Oil Prices Respond to OPEC+ Decision to Halt Production Growth: Global Markets on Edge
On Tuesday, November 4, global oil prices began to decline, directly responding to the recent decision made by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which announced a pause in production increases for the first three months of the upcoming year.
This move, which raised the production target by approximately 2.9 million barrels per day—or about 2.7% of the world’s supply from April—raised concerns among investors over potential oversupply in the global market, leading to the price decline.
Brent futures fell by 15 cents (0.2%) to $64.74 per barrel, while U.S.
WTI crude decreased by 14 cents (also 0.2%) to $60.91 per barrel.
Despite these developments, some experts do not foresee an oversupply.
U.S.
Deputy Energy Secretary James Denny stated that he does not anticipate a significant oil surplus by 2026.
The decision by OPEC+ to keep production targets unchanged followed Russia’s lobbying for a pause, as the country finds it difficult to boost exports under Western sanctions.