OPEC's announcement of a limited resumption of production lowers oil prices

The price of oil fell this week from $84.22 to $77.52 per barrel following OPEC's decision to increase its oil production slightly in 2024. The organisation nevertheless reaffirmed its intention to continue producing below capacity. Unused production capacity represents the equivalent of 3 million barrels per day, with Saudi Arabia bearing a large share of the burden. Non-OPEC oil production growth is expected to reach 1.4 million barrels per day this year. The growth in oil supply, against a backdrop of lacklustre demand, is weighing on prices and limiting the OPEC+ group's ability to influence prices.