Oil shows stability after falling to lows since mid-November

Benchmark oil prices changed little during morning trading on Tuesday, Report informs via Interfax.

The day before, quotes dropped to their lowest levels since mid-November on concerns that OPEC+ countries would not fully comply with their commitments to reduce production.

The price of February futures for Brent on the London ICE Futures exchange amounted to $78.03 per barrel, which corresponds to the level at the close of the previous session. The day before, these contracts fell in price by $0.85 (1.1%), to $78.03 per barrel.

Quotes of WTI oil futures for January in e-trading on the New York Mercantile Exchange (NYMEX) increased by 5 cents to $73.09 per barrel. At the end of the last session, they fell by $1.03 (1.4%) to $73.04 per barrel.

On Monday, both marks closed trading at their lowest levels since November 16th.

Last week, individual OPEC+ countries announced a voluntary reduction in oil production by 2.2 million barrels per day in the first quarter of 2024. Saudi Arabia will reduce production by 1 million b/d, and Russia will lower it by 300,000 b/d.

A production cut by OPEC+ will bring balance to the oil market in the first quarter of next year, but without further measures, the global market could see a surplus of 1 million bpd in the second quarter, Citi analysts fear.