• WTI price loses ground despite the OPEC+ extension of oil output cuts by 2.2 million bpd.
• Hamas and Egyptian mediators continue the ceasefire talks in Cairo in the absence of the Israeli delegation.
• China’s aim to achieve a 5% GDP growth target in 2024 is anticipated to bolster fuel consumption.

For the second straight day, West Texas Intermediate (WTI) oil prices have been falling; on Tuesday, they were averaging about $78.20 per barrel. Crude oil prices are falling despite voluntary oil supply reductions being implemented by OPEC+ nations, including Russia.

A voluntary reduction in oil output of 2.2 million barrels per day (bpd) has been extended by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) through the second quarter of this year. Saudi Arabia has declared that it will extend its voluntary reduction in output of one million barrels per day. Additionally, Russia has pledged to cut its oil production and exports by an extra 471,000 barrels per day. Furthermore, it has been decided that Iraq and the UAE will keep lowering their output by 220,000 and 163,000 bpd, respectively.

Talks to secure a truce in Gaza are still ongoing in Cairo between Hamas and Egyptian mediators. Israel has chosen not to send a delegation in defiance of Washington’s demands for a ceasefire. Reuters claims that Israel’s decision was prompted by Hamas’s inability to produce a list of the hostages that were captured on October 7 and are still alive.

Furthermore, the Maritime Affairs Authority, which is under the leadership of the Houthis, must grant authorization to ships before they can enter Yemeni seas, according to a statement made on Monday by Houthi Telecommunications Minister Misfer Al-Numair.

China, whose economy has been growing slowly since the COVID-19 outbreak, has promised to revive it. The country commits to address industrial overcapacity and “transform” its economic development paradigm. Aiming for about 5% of GDP growth in 2024, as was the goal last year, would be in line with analyst predictions. Reaching this goal is expected to increase the amount of fuel that the biggest importer of crude oil in the world uses, which will support the price of crude oil.