OPEC+ announced on November 3 an extension of its voluntary production cut of 2.2 million barrels per day for an additional month, resulting in a short-term rebound in oil prices.

Recently, due to a global demand slowdown, the three major energy agencies have all downgraded their forecasts for global oil demand in 2025, with particularly significant declines anticipated in China and OECD countries. Additionally, recent Israeli attacks on Iran did not impact OPEC’s oil facilities, easing market concerns over Middle Eastern geopolitical risks, which has contributed to a sustained decline in oil prices over recent months.

Amid the continued weakness in oil prices, OPEC had previously extended its production cut measures from June to September and then further to November and December. Although this latest extension of production cuts reduces supply in the short term and provides temporary support to oil prices, the potential for future production increases could exert greater downward pressure on a market where demand is expected to remain relatively weak in the medium to long term.

As of November 4, WTI crude oil futures prices rose by 3.49% to $71.46 per barrel, while Brent crude oil futures prices increased by 2.71% to $75.08 per barrel.

Read more at Datatrack