WTI extends its losses to around $78.10 despite the extension of production cuts by OPEC+

• The price of WTI loses ground despite the extension of oil production cuts by 2.2 million bpd by OPEC+.
• Hamas and Egyptian mediators continue ceasefire talks in Cairo in the absence of the Israeli delegation.
• China's goal of achieving 5% GDP growth in 2024 is expected to boost fuel consumption.

WTI (West Texas Intermediate) oil prices continue to decline for the second consecutive day and are around the region of $78.15 per barrel at the start of the European session on Tuesday. Despite efforts by OPEC+ countries, including Russia, to implement voluntary oil production cuts, crude oil prices are facing downward pressure.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) have agreed to extend voluntary oil production cuts until the second quarter, for a total of 2.2 million barrels per day (bpd). Saudi Arabia has announced its intention to extend its voluntary production cut of 1 million barrels per day. Russia has also committed to reducing its oil production and exports by a further 471,000 bpd. Additionally, Iraq and the UAE have agreed to further reduce their production by 220,000 and 163,000 bpd, respectively.

Hamas and Egyptian mediators continue talks in Cairo to achieve a ceasefire in Gaza. Despite pressure from Washington in favor of a truce, Israel has chosen not to send a delegation. According to Reuters, Israel's decision is due to Hamas not providing a list of the hostages taken on October 7 who are still alive.

Additionally, Houthi Telecommunications Minister Misfer Al-Numair stated on Monday that ships must obtain permission from the Houthi-controlled Maritime Affairs Authority before entering Yemeni waters.

China has pledged to revitalize its economy amid sluggish growth since the COVID-19 pandemic. The nation promises to “transform” its economic development model and address industrial overcapacity. Setting an economic growth target for 2024 at around 5%, similar to last year, coincides with analysts' forecasts. Achieving this goal is expected to boost fuel consumption by the world's largest crude oil importer, thereby supporting crude oil prices.