Seeking balance in oil

Oil is on course for its worst decline since 2018 following the OPEC+ meeting. Oil rose on Friday but continued on course for its longest weekly losing streak since 2018 as investors skeptical that deeper OPEC+ supply cuts will be effective. Brent crude, which traded above $75 a barrel, is still on track for a seventh weekly decline. U.S. crude was near $70 a barrel after falling 11% in the past six sessions. Crude has ended every session lower since a meeting between the Petroleum Exporting Countries and its allies last week as the group’s plans for deeper cuts were met with skepticism. The decline came after top producer Saudi Arabia said restrictions could be extended beyond March, followed by similar statements from Russia, Algeria and Kuwait. There are also concerns about demand. According to Bloomberg research, Chinese consumption is expected to rise by 500,000 bpd next year; that’s less than a third of the increase in 2023. Meanwhile, in the U.S., many economists are predicting a recession starting next year. “The outlook for oil demand remains bleak. The recovery in China has failed to gain momentum, while factory activity in the West continues to contract,” said Ravindra Rao, head of commodities research at Kotak Securities in Mumbai.