FY24 Review | Brent rises nearly 9% in last 12 months on OPEC cuts, Middle-East tensions; Will oil hit $100 in FY25?
Also Read: Expert View | Oil market oversupplied with high US output, Brent seen at $87-$92 for 2024: ShareKhan's Mohammed Imran -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 per barrel, which at the time - was the highest rise in more than a year then. 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.
Also Read: ‘Crude’ impact on economy: $10 rise in Brent widens India's CAD by 0.5%, say analysts as oil sizzles to 10-month high -A month later, Russia joined Saudi to announce an extra oil export curb of 300,000 bpd. In September, Saudi Arabia and Russia together announced that will extend with the oil supply curbs of more than 1.3 million bpd till the end of the year. The production cuts first announced by the oil majors in July led to a sharp surge in
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