Oil prices fell by more than 2% – yesterday, Friday – at settlement after a volatile trading week, at a time when the market is anxiously watching the latest round of OPEC Plus production cuts and the slowdown in global manufacturing activity.
Brent crude futures for February delivery fell 2.45% to $78.88 per barrel upon settlement, and US West Texas Intermediate crude futures fell 1.9% to $74.07.
During the week, Brent recorded a decline of about 2.1%, while West Texas Intermediate recorded a decline greater than 1.9%.
On Thursday, the oil-producing countries in the OPEC Plus alliance – which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and other countries, including Russia – agreed to reduce global oil production on the global market by about 2.2 million barrels per day in the first quarter of next year, including… Extending current voluntary cuts from Saudi Arabia and Russia by 1.3 million barrels per day.
The OPEC Plus alliance – which pumps more than 40% of the world’s oil – is focusing on reducing production with prices declining from about $98 per barrel late last September, amid fears about weak economic growth in 2024.
A survey showed that the manufacturing sector in the United States is still weak, and that the employment rate in factories decreased last November.
On Friday, talks to extend a week-long truce between Israel and the Palestinian Islamic Resistance Movement (Hamas) collapsed, leading to the resumption of the war in Gaza, which could result in the disruption of global oil supplies, according to Reuters.
