It seems that OPEC+ can no longer regulate oil prices. On November 30, the cartel agreed to additional voluntary oil production cuts. However, this move looks like a sign of its powerlessness. There is a possibility that OPEC will not be able to reduce output if oil prices skyrocket.
Oil prices collapsed shortly after the alliance announced its decision. Apparently, such a step is not enough to bring supply and demand into balance.
Moreover, OPEC+ members might not be ready to comply with the established quotas. For instance, Angola pushed back against a new output quota and said it planned to breach it. Moreover, the country added that it would leave the alliance in case of pressure.
Although demand in Asia remains subdued, there is hope that it will be more than offset by increased supplies from non-OPEC oil producers, including the United States, Guyana, and Brazil.
In the meantime, thanks to favorable oil price levels and OPEC+ restrictions, US crude production rose as much as 1.7% in September, hitting a new monthly record of 13.24 million barrels per day.