ALBAWABA - The Organization of the Petroleum Exporting Countries (OPEC) reduced its demand forecast for the second time in two months on Tuesday, prompting the price of Brent oil to drop below $70 per barrel for the first time since December 2021, CNBC reports.
In response to the ongoing decline in the prices of crude oil and gasoline, the world's leading oil producers, OPEC+, said on Thursday that they would be extending their output cuts for oil.
According to a statement that was released by OPEC+ on Thursday, member nations will continue to reduce their output by 2.2 million barrels per day until November. Additionally, the group intends to phase down the voluntary reductions starting in December and will continue until November 2025.
A barrel of Brent reached a new low of $69.08, which is the lowest price since December 2, 2021, according to CNBC. On the other hand, a barrel of crude oil from the United States traded at $65.82, which is the lowest price since May 4, 2023.
OPEC now anticipates that demand would increase by around 2 million barrels per day in 2024, which is approximately 80,000 barrels per day slower than its earlier prediction. The group anticipates a demand rise of 1.7 million barrels per day (bpd) going forward, which is around 40,000 bpd less than what was first projected.
Despite persistent production restrictions and Middle East geopolitical unrest, oil prices are down this year. Record US supply as well as worries about declining demand in China, the world's top oil importer, have kept prices in check, as CNN writes.
