WASHINGTON (dpa-AFX) - Oil futures settled lower on Thursday despite the Organization of Petroleum Exporting Countries and their allies, collectively known as OPEC+, deciding to push back plans to raise production until April.
The decision means the oil cartel is extending its voluntary cut of 2.2 million barrels a day to 18 months. The group said it plans to gradually increase output starting in the second quarter and continue doing so until September 2026.
Weak demand from China and rising production in the U.S. weighed on oil prices.
West Texas Intermediate Crude oil futures for January closed down $0.24 or about 0.4% at $68.30 a barrel.
Brent crude futures ended lower by $0.22 or about 0.3% at $72.09 a barrel.
Traders noted a report from International Energy Agency that warned global supply will exceed demand by 1 million barrels per day next year despite the voluntary production cuts by OPEC+.
Oil prices edged higher earlier in the day, supported by prospects of supply disruptions due to the ongoing unrest in the Middle East and the Russian - Ukraine war, expectations of a rate cut by the Federal Reserve later this month and data showing a larger-than-expected drop in U.S. inventories.
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