Oil prices slip further as OPEC cuts, China data underwhelm
Investing.com-- Oil prices fell slightly in Asian trade on Friday, extending losses from the prior session as the OPEC+ cut supply by a smaller-than-expected margin, while weak data from China added to concerns over worsening demand.
Crude prices wiped out most of their gains made earlier this week, and were now set to end the week a smidge higher. They were also nursing two straight months of losses.
The Organization of Petroleum Exporting Countries and allies (OPEC+) said on Thursday it will cut production by an additional 2.2 million barrels per day (bpd) in the first quarter of 2024.
But the new production cuts were voluntary, and came amid some disagreements among OPEC+ members over reductions in output. They also disappointed traders hoping for deeper supply cuts by the cartel, given the recent decline in oil prices.
Brent oil futures expiring February fell 0.2% to $80.65 a barrel, while West Texas Intermediate crude futures fell 0.2% to $75.91 a barrel by 20:55 ET (01:55 GMT). Both contracts lost over 6% each in November, after steep declines on Thursday.
Strength in the dollar also pressured crude markets, after the greenback rebounded from 3-½ month lows in anticipation of an address by Federal Reserve Chair Jerome Powell later on Friday.
Of the new 2.2 million bpd cuts announced on Thursday, 1 million bpd is a rollover of Saudi Arabia’s ongoing supply cuts. Russia also rolled over its ongoing curbs, but deepened them slightly to 500,000 bpd from 300,000 bpd.
That left the total new production curbs at less than 1 million bpd, which underwhelmed traders hoping for bigger curbs. While the new cuts are still set to negate a crude oil surplus in the first quarter of 2024, supplies will be less tight than
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