Oil prices fall following OPEC+ meeting

Brent crude oil fell to 80 dollars per barrel after dropping 2.4 percent in the previous session in February, while US crude oil was around 76 dollars. The alliance announced that it would make new production cuts of approximately 900 thousand barrels per day starting in January, but since Angola has already rejected its quota, the restrictions are voluntary. Saudi Arabia said it would extend its separate cut of 1 million barrels per day through the first quarter.

Crude oil initially climbed on Thursday after OPEC+ reached a preliminary agreement on cuts, with hopes that it would help stem an expected surplus early next year. This optimism quickly faded due to a lack of details, including a confusing post-meeting press conference and the absence of final communiqués, which left investors puzzled.

Vandana Hari, founder of the consulting firm Vanda Insights, said in an interview with Bloomberg TV that the outcome of the OPEC+ meeting was a "confusing, complicated mess... These are all still voluntary cuts, and that is one of the reasons for the disappointment," adding that it remains to be seen over time whether the extra 900 thousand barrels per day of additional cuts in the first quarter will be implemented.

Crude oil is set to close the week flat following the volatile course of OPEC+, after recording its second monthly decline on signals of rising supply from outside the group and a weak demand outlook. These concerns were further highlighted on Thursday when the US, the world's largest producer, reported that its crude oil production reached a record level of 13.2 million barrels per day in September.

News Source: 12punto