From $89 to near $100 and back: How Brent crude moved since last Diwali over OPEC+ cuts & more

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Also Read: From high inflation to import bill - the domino effect of rising crude oil prices on Indian economy Since November 2022 to now, Brent crude has swung from $89 per barrel to its 10-month high of $97 in late September, and coming down to its current $81.4 mark. Last week, the crude benchmark also crashed to $79/barrel mark over waning demand from top oil consumers including US and China. -In April 2023, OPEC+ announced oil production cuts of around 1.16 million barrels per day (bpd) in a surprise decision.

The shock cut, led by Saudi Arabia, immediately drove crude oil prices 8 per cent higher to $83.95 a barrel, which at the time - was the highest rise in more than a year. The voluntary cuts started from May 2023 and were put in place to last until the end of the year. -OPEC+ met for its scheduled oil output policy decision in June 2023 and announced that it will reduce overall production targets from 2024 by a further total of 1.4 million bpd.

OPEC nations produce around 30 per cent of the world's crude oil. Saudi Arabia is the largest oil producer within the cartel, producing more than 10 million bpd. OPEC+ pumps around 40 per cent of the world's crude.

-However, Saudi Arabia, OPEC cartel's dominant member, announced that it will alone make deep production cuts of 1 million bpd starting from July, as part of a broader output-limiting OPEC+ deal as the group faces flagging oil prices and a looming supply glut. The rest of the OPEC producers then had agreed to extend earlier cuts in supply through the end of 2024. -A month later, Russia joined Saudi to announce an extra oil export curb of 300,000 bpd.