West Texas Intermediate and Brent crude prices fell by more than 2% after OPEC+ reduced production less than expected.
On December 1, 2023, the oil price situation analysis unit, Thai Oil Public Company Limited, stated that the influencing factors are as follows: decline in WTI and Brent crude prices. After yesterday’s OPEC+ meeting, the production cuts announced in the first quarter of 2024 were lower than expected, and only extended production cuts of 1.3 million barrels per day for Saudi Arabia and Russia. While other OPEC+ members reduced only 0.7 million barrels per day. Earlier there was news that the OPEC+ group was discussing an additional cut of 2 million barrels per day.
The price of WTI on November 30, 2023 was trading at $75.96 per barrel, down -$1.90, and the price of Brent crude was $82.83 per barrel, down -$0.27.
The US Energy Information Administration (EIA) revealed the results of US crude oil production for September 2023, rising by more than 1.7% to 13.24 million barrels per day. This is the largest increase since March 2023.
From yesterday’s OPEC+ meeting it was revealed that Brazil will join as a new member of OPEC+. As of January 2024, Brazil aims to increase crude oil production to become the fourth largest producer in the world by 2020. Brazil’s crude oil exports are currently worth $3.92 billion. At the same time, it imported $681 million, according to OPEC, with exports to China being the main destination.
Gasoline price
The price of gasoline rose less than the price of Dubai crude. After US gasoline stocks increased by 1.7 million barrels, reaching 218.2 million barrels last week, prices received support from increased demand for gasoline in China.
Diesel fuel price
The price of diesel rose less than the price of Dubai crude. The market came under pressure after news that Bahrain agreed to a long-term contract to sell diesel at a lower price for 2024. However, supply in Taiwan is expected to remain weak due to a longer-than-planned maintenance shutdown in Formosa. The refinery, which may be delayed until the second half of December 2023.