Global Oil Prices Rise Following Potential OPEC+ Production Cuts

Following reports of OPEC+'s decision to maintain oil production cuts until the end of the first quarter of 2025, global oil prices experienced a relative increase on Tuesday, December 7. Reuters cited analysts stating that Israel's threats of resuming war in Lebanon after Hezbollah's violation of the ceasefire also contributed to this price rise. On Tuesday, North Sea Brent crude futures rose by 2.5% to $73.62 per barrel, while West Texas Intermediate (WTI) crude oil increased by 2.7% to $69.94 per barrel. On Monday, December 5, Reuters reported from four informed sources that OPEC+ is likely to extend the current production cuts until the end of the first quarter of 2025 in its meeting on Thursday to further strengthen the oil market. According to this report, OPEC+, which produces nearly half of the world's oil, intended to implement an increase of 180,000 barrels per day from eight member countries starting next January, but this increase, previously delayed since October, has been postponed again due to falling prices. OPEC+, consisting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will meet on Thursday to decide on its oil production policy. The rise in crude oil prices in global markets follows ongoing conflict and tension in the Middle East.