Oil prices drop despite OPEC+ cuts

Oil prices fell yesterday, settling over 2.2% lower at below US$70/bbl despite OPEC+ nearing the end of supply hikes. President Trump’s upcoming “major” Russia statement has the market anxious about potential sanctions. Natural gas rallied 3.8% after the EIA reported a smaller-than-expected storage increase, with total US storage up 6.1% from the 5-year average.

Brazil’s CONAB raised corn production estimates for 2024/25 to 132mt due to favorable weather conditions. This surpasses the previous forecast of 128.3mt and the 115.5mt produced in 2023/24. Strong Brazilian supply and expectations for a robust US corn crop have caused CBOT corn prices to drop over 11% this year.

Read more at Investing.com: Oil Slips as Q4 Surplus Expectations Undermine OPEC+ Production Cuts