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Opec+ production cuts leave oil market sceptical

Crude prices fall after unconventional announcement of output curbs highlights strains within group

Opec+ members have agreed to make additional voluntary cuts to oil production in 2024 in an increasingly fraught attempt to bolster the market, but crude prices fell due to signs of ongoing strains in the group.

Saudi Arabia pledged to extend an existing voluntary cut of 1mn barrels a day until the end of the first quarter while Russia said it would deepen its existing voluntary export reduction to 500,000 b/d from 300,000 b/d, as the group looks to offset a stuttering global economy and rising supplies from rival producers.

But in an unusual step Opec officials said additional voluntary cuts, designed to take the total reduction above 2mn b/d or about 2 per cent of world supply, would be announced by individual members in due course rather than the secretariat.

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