Market Analysis: OPEC+ will face a tougher test

OPEC+ may have provided support to crude oil prices by extending oil supply cuts into the next quarter, but the group will soon face a tougher test. The IEA’s projections suggest that the alliance may need to stick to full-year production limits if it wants to prevent global markets from slipping back into surplus. Other forecasters, such as Standard Chartered, believe that demand will be strong enough that OPEC+ will ease production cuts and resume production. The cooperation of OPEC+ members is also far from guaranteed. As the energy transition begins to erode demand growth, they must weigh Long longer oil can be extracted. The UAE currently has a lot of spare production, and the country has been eager to monetize its capabilities, having previously clashed with Saudi Arabia over its rights to recognition. Then there’s Iraq, which at one point defies OPEC+ production quotas while seeking revenue to rebuild its economy, even as it has promised to do better. Brokerage PVM Oil Associates said: "Unity and discipline must be maintained. OPEC+ will face a tough test in 2024. ”