Petroleum futures traded lower on Friday early morning as the marketplace was dissatisfied with the voluntary production output cuts revealed by OPEC (Organisation of the Petroleum Exporting Countries) and its allies, called OPEC+.
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At 9.53 am on Friday, February Brent oil futures were at $80.62, down by 0.30 percent; and January petroleum futures on WTI (West Texas Intermediate) were at $75.87, down by 0.12 percent.
December petroleum futures were trading at 6,337 on Multi Product Exchange (MCX) in the preliminary trading hour of Friday early morning versus the previous close of 6,407, down by 1.09 percent; and January futures were trading at 6360 as versus the previous close of 6,436, down by 1.18 percent.
As reported previously, the ministerial conference of OPEC+ members was rescheduled from November 26 to November 30 following the reported arguments over the production output cuts by some member nations
Instead of dispersing the production output cuts amongst the member nations, OPEC+ conference on November 30 revealed even more voluntary cuts of around 2.2 million barrels a day throughout very first quarter of 2024 amongst 8 members.
Of the 2.2 million barrels of voluntary production output cuts, 1 million barrels a day was the extension of Saudi Arabia’s existing production output cut, and Russia’s 500,000 barrels a day (from the existing 300,000 barrels a day) cut. The extension of production output cut by Saudi Arabia and Russia was anticipated by the market.
This made the efficient extra voluntary output cuts to be in the series of around 900,000 barrels a day in the very first quarter of 2024.
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” An issue for the marketplace is the reality that these revealed cuts were voluntary instead of OPEC+ broad cuts. These voluntary cuts recommend that it is ending up being tough for members to settle on OPEC+ cuts. For that reason, if more action is required in future, it will end up being significantly tough for the group to react,” Warren Patterson stated in Products Feed of ING Believe on Friday.
Among the crucial problems in the lead-up to the OPEC+ conference was the production quotas set for Angola and Nigeria previously this year. These nations were not pleased with their lower output target for 2024, he stated.
Following an independent evaluation of what these nations would can producing next year, Nigeria’s production target was raised from 1.38 million barrels a day to 1.5 million barrels a day. Nevertheless, Angola’s target was cut even more from 1.28 million barrels a day to 1.11 million barrels a day. Angola has stated it will not follow its brand-new quota and will pump at 1.18 million barrels a day from January, ING Believe’s Products Feed stated.
December gas futures were trading at 234.10 on MCX in the preliminary trading hour of Friday early morning versus the previous close of 234.90, down by 0.34 percent.
On the National Commodities and Derivatives Exchange (NCDEX), December guarseed agreements were trading at 5657 in the preliminary trading hour of Friday early morning versus the previous close of 5645, up by 0.21 percent.
December jeera futures were trading at 44,000 on NCDEX in the preliminary trading hour of Friday early morning versus the previous close of 44,610, down by 1.37 percent.
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