This is music to my ears. The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, have pledged to cut 2.2 million barrels per day for the first quarter of 2024. But investors remain skeptical that total supply will drop, as output growth in non-OPEC countries is expected to lead to excess supply next year.
“Growth at U.S. shale oil operations continues to surprise on the upside, while gains across other non-OPEC producers have been unexpectedly large,” said ANZ Research analysts in a note.