Oil Prices Rise Supported by OPEC and Russia’s Production Cuts and UAE Measures
Oil prices increased on Wednesday, driven by reduced oil supplies from Russia and the OPEC alliance,
alongside U.S. demand-supportive data.
The UAE continues its efforts to implement production cuts aimed at stabilizing the market following recent price declines.
Contents
Oil
Oil Prices Rise Amid Positive Outlook
Brent crude for March delivery rose by 0.75% to $77.63 per barrel,
while U.S. WTI crude for February delivery climbed 0.89% to $74.91 per barrel.
OPEC
OPEC Production Declines, Led by the UAE
According to a Bloomberg report, OPEC production decreased by 120,000 barrels per day in December,
reaching 27.05 million barrels per day.
This drop was largely attributed to significant cuts by the UAE, which reduced its oil exports to the lowest level in 18 months
and postponed a planned production increase of 300,000 barrels per day from January to April.
Despite this, UAE production remained at 3.2 million barrels per day,
exceeding its agreed quota within the alliance.
Russia
Russian Production Falls Amid Rising U.S. Demand
Russian data indicated that oil production fell to 8.971 million barrels per day in December,
below the government’s target.
In the U.S., economic data boosted confidence in demand,
with the services sector growing for the sixth consecutive month and job openings increasing in November.
Additionally, API estimates showed a 4.02 million-barrel decline in oil inventories last week, reflecting strong demand.
Projections
Investor Expectations for Inventories and Future OPEC Decisions
Investors await the release of official oil inventory data from the Energy Information Administration,
with forecasts predicting a 1.8 million-barrel decline.
At the same time, recent production cuts by OPEC and its affiliated alliances,
led by the UAE, are anticipated to stabilize prices in the coming months.
Oil Prices Rise Supported by OPEC