Experts: OPEC+ production cuts cannot affect market prices due to the United States

Experts believe that OPEC+ will not be able to reduce production enough to raise oil prices above the current level. The main reason for this is the record high production of shale oil in the United States.

At the moment, West Texas Intermediate (WTI) crude oil prices are $75.94 per barrel, which is above the level of about $73 in the previous week. Brent crude oil prices also rose to $81 per barrel from $79 the previous week.

The general increase in oil prices is explained by the tense situation in the Red Sea. Nevertheless, it is worth noting that oil prices are still significantly below the September high, when the price reached $94 per barrel of WTI. The subsequent drop occurred when the United States produced a record amount of oil, which led to an oversupply in the market and, ultimately, prevented the achievement of OPEC+ goals.

Next year, oil demand is expected to decrease due to the slowdown in the global economy. Experts also point out that the world's central banks are cutting rates not only because of the improvement in the inflationary situation, but also because of the deterioration in economic prospects, which will negatively affect demand for crude oil and energy next year.