OPEC+ producers decided in June to extend crude oil production cuts until the end of 2024, while Saudi Arabia will continue to voluntarily reduce its oil production by 1 million barrels per day, keeping output at around 9 million barrels per day. Meanwhile, Russia also announced that it would voluntarily reduce its oil exports by 500,000 barrels per day in August in order to ensure a balanced market.
The expected news of the cuts led to a 1% rise in oil prices on the day and did not cause undue panic in the market, but analysts have been alerting investors to the impending supply crunch.
Market information is confusing and it is difficult to make accurate judgments based on it. For example, the U.S. Energy Information Administration predicts that non-OPEC producers will push global crude oil production up by 1.5 million barrels per day (bpd) and 1.3 million bpd this year and next, respectively. The United States, Norway, Canada, Brazil and Guyana and other countries have increased their production by a large margin, which to a certain extent limits the space for oil prices to rise.
