Throttling back on oil production hasn’t helped OPEC and its allies to push up crude prices lately. At least four times in the past 15 months, members of the alliance known as OPEC+ have slashed oil output, only for prices to soon retreat anyway. Global oil demand has grown by a robust 1.9 million barrels a day this year, according to S&P Global Commodity Insights. If and when OPEC+ regains leverage may hinge on global oil demand, since the outpouring of non-OPEC+ petroleum continues to grow. Global oil demand growth in 2024 is widely expected to fall far short of this year’s rate, which was inflated by China’s postpandemic reopening.

Source: Wall Street Journal December 23, 2023 15:03 UTC