U.S. oil futures settle more than 2% lower after OPEC+ announces voluntary output cuts

U.S. oil futures settled with a loss of more than 2% on Thursday, even as OPEC+ announced that several of its member countries agreed to voluntary cuts totaling 2.2 million barrels a day for the first quarter of 2024. “While oil prices initially rallied on the extension and expansion of OPEC output cuts into 2024, investors remain concerned about OPEC compliance and global demand growth as we head deeper into the seasonally soft winter demand period,” said Rob Haworth, Senior Investment Strategy Director, U.S. Bank Asset Management Group. Outside of Saudi Arabia, “OPEC members historically struggle in compliance with planned cuts, leading to some market skepticism about the actual magnitude of cuts that will be implemented.” January West Texas Intermediate crude
CLF24,
-3.12%
fell $1.90, or 2.4%, to settle at $75.96 a barrel on the New York Mercantile Exchange.