OPEC+ oil producers on Thursday agreed to voluntary output cuts totaling about 2.2 million barrels per day (bpd) for early next year led by Saudi Arabia rolling over its current voluntary cut, Reuters reported.
Benchmark global oil prices settled down around 2%, in part because the reductions were voluntary and because of investor expectation ahead of the meeting that additional supply cuts might be deeper.
Saudi Arabia, Russia and other members of OPEC+, who pump more than 40% of the world's oil, met online on Thursday to discuss supply policy.
"The market reaction implies disbelief in the full efficacy of the cuts," JP Morgan analyst Christyan Malek said.
"However, setting a new framework for each member to deliver on its cut reflects the degree of trust and cohesion among the members; case in point, the fact Brazil is joining is testament to the strength in numbers for OPEC+."
The group discussed 2024 output amid forecasts the market faces a potential surplus and as a 1 million barrel per day (bpd) cut by Saudi Arabia was set to end next month.