Oil prices experienced a decline of nearly 2% on Thursday after OPEC+ producers revealed that their voluntary oil output cuts for the first quarter of next year did not meet market expectations. The news comes as Brent crude futures for January fell by 27 cents, or 0.3%, to $82.83 a barrel, with a projected 5% loss for November. On the other hand, U.S. West Texas Intermediate crude futures dropped by $1.96, or 2.5%, to $75.90, on track for a 6% loss for the month.

The alliance of OPEC+ producers, accounting for more than 40% of global oil production, agreed to implement voluntary output cuts totaling almost 2 million barrels per day (bpd) in the first quarter of 2024. However, it was later revealed that at least 1.3 million bpd of those cuts were merely extensions of existing curbs imposed by Saudi Arabia and Russia. Earlier expectations suggested that additional cuts could reach up to 2 million bpd.

Among the countries participating in the output cuts were Saudi Arabia, Russia, Kuwait, Kazakhstan, and Algeria. These nations expressed their intention to gradually unwind the cuts after the first quarter, based on prevailing market conditions.

In a significant development, the OPEC+ alliance extended an invitation to Brazil, one of the top 10 oil producers globally, to join the group. Brazil's energy minister has indicated the country's interest in becoming a member at the beginning of next year.

Meanwhile, the United States, the largest producer of oil worldwide, continued to witness an increase in crude output. The Energy Information Administration reported that crude production in the U.S. rose by 1.7% in September, reaching a monthly record of 13.24 million bpd. However, there was a slight decline of 0.1% in crude production in Texas, dropping to 5.57 million bpd, marking the lowest level since July. This decline represents the first decrease in production within the state since April.

The latest developments in the oil market reflect the complex dynamics between the OPEC+ alliance and the ongoing growth of crude output in the United States. Investors and market analysts will closely monitor the progress of the voluntary output cuts and their impact on global oil prices in the coming months.