Oil prices reacted to yesterday's OPEC+ decisions with slight losses. The Brent oil price slipped below the USD 72 per barrel mark in the morning, Commerzbank’s commodity analyst Carsten Fritsch notes.
Thursday's OPEC+ decisions don’t shake oil markets
“The postponement of the planned production increase by a further three months had been expected. However, it came as something of a surprise that the reversal of the voluntary production cuts of 2.2 million barrels per day planned from April is set to take place over a longer period than previously thought. In addition, the voluntary cuts of 1.65 million barrels per day in place since April 2023 were extended by one year until the end of 2026.”
“This can be seen as an acknowledgement by OPEC+ that the room for increasing oil supply is very limited. Even with yesterday's decisions, the oil market is likely to be oversupplied next year because global oil demand is likely to rise less strongly than supply outside OPEC+. As a result, there is no additional need for oil from OPEC+ on the oil market.”
“However, this would change if the supply of oil from Iran and Venezuela were to fall significantly as a result of tighter US sanctions. In this case, the currently emerging supply surplus of around 1 million barrels per day could quickly evaporate. This risk does not seem to be sufficiently taken into account by the market at present, which is why we expect the oil price to rise next year.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD looks sidelined below 1.1400, Dollar on the defensive
EUR/USD now loses some upside traction amid a consolidative range in the area below the key 1.1400 barrier at the beginning of the week, all against the backdrop of a mild pullback in the US Dollar and further repricing of US tariffs.
GBP/USD climbs above 1.3150 as USD sellers refuse to give up
GBP/USD preserves its bullish momentum and trades above 1.3150 in the European session on Monday. The sustained US Dollar weakness suggests that the path of least resistance for the pair remains to the upside. US-China trade updates remain in focus.
Gold retreats from record-high, holds above $3,200
Gold pulls away from the new record-high it set at $3,245 at the weekly opening but manages to hold comfortably above $3,200. Easing concerns over a deepening trade conflict between the US and China seem to be causing XAU/USD to enter a consolidation phase.
Six Fundamentals for the Week: Tariffs, US Retail Sales and ECB stand out Premium
"Nobody is off the hook" – these words by US President Donald Trump keep markets focused on tariff policy. However, some hard data and the European Central Bank (ECB) decision will also keep things busy ahead of Good Friday.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.