ALBAWABA – The US dollar slipped as oil prices edged slightly higher over the weekend through Sunday on the Organization of Petroleum Exporting Countries and its allies’ (OPEC+) initial agreement to further cut output well into 2024.
OPEC+ agreed on principle to cut oil output and supply by another one billion barrels per day (bpd), news agencies reported on Thursday, and announced the decision will be put to a vote.
Reuters and Bloomberg both reported OPEC+ delegates confirming the initial agreement, but no reports on the results of the vote have come out as of yet.
Oil prices rose as the greenback weakened, with Bloomberg’s US Dollar index spot down 0.22 percent to 103.2680, in what seems to be one of the toughest patches for the American currency in months.
Brent crude futures fell $1.98 on Saturday, or 2.45 percent, to $78.88 per barrel as West Texas Intermediate (WTI) crude futures slipped $1.89, or 2.49 percent, to $74.07.
Bloomberg shows WTI crude oil prices down 2.08 percent, at $74.38 a barrel.
Oil prices are affected by typical market dynamics and the strength of major currencies, such as the US dollar - Shutterstock
Meanwhile, OPEC Basket futures rose 1.32 percent, or $1.11 on the barrel, to $85 on closing three days ago, according to oilprice.com, having fallen from the month high of $89 on November 3.
Despite OPEC Basket crudes benefiting from the ambiguity surrounding the organization’s decision, oil markets in general have been suspended in limbo, waiting to hear the final decision from OPEC+.
OPEC+ members gathered on Thursday to discuss oil cuts, but negotiations were bumpy as news agencies, including Bloomberg, reported multiple African member states hesitant to cut output.
Oil prices sunk over the week in the aftermath of OPEC+ postponing the meeting to Thursday, which some analysts say has helped Saudi Arabia argue for more cuts to bolster oil prices.
The proposed and initially agreed-to cuts, subject to a ballot, will add another one million barrels per day on top of the currently ongoing million barrel per day mandatory cuts. In addition to the voluntary cuts by Saudi Arabia and Russia, which should also carry well into 2024.
