Oil market oversupply in 2024, OPEC+ cuts production further to face challenges?

According to Arab News, credit rating agency Fitch Ratings has just released a report, stating that the Organization of the Petroleum Exporting Countries and its partners (OPEC+) may further cut production in 2024.

Khu vực MENA dự kiến sẽ chứng kiến mức tăng trưởng 3,5% trong các hoạt động phi dầu mỏ vào năm 2024, nhờ những nỗ lực đa dạng hóa kinh tế và cải cách mới. màn trập. (Nguồn: Arab News)

The MENA region is expected to see 3.5% growth in non-oil activities by 2024, thanks to economic diversification efforts and new reforms. shutter. (Source: Arab News)

Fitch Ratings' report said that weak growth momentum of the global economy in 2024 could push OPEC+ to cut production further if the oil market moves into a state of oversupply.

Countries in the region are expected to stabilize oil production in 2024, following OPEC+’s decision to cut production in 2023. The report also said that oil-exporting countries in the Middle East and North Africa (MENA) region are expected to witness strong economic growth in 2024, mainly due to the upturn in non-oil economic activities. Accordingly, non-oil economic activities are expected to grow by 3.5% in 2024, thanks to economic diversification efforts and new reforms.

“The Israel-Hamas conflict poses significant risks to the tourism sector in the coming period. In addition to economic and financial reforms, multilateral and bilateral financial support is an important measure in some countries,” the agency warned in its report.

The report highlights that credit fundamentals in MENA countries are expected to face challenges from high debt burdens and tight financial conditions amid high global interest rates, while domestic interest rates remain high due to inflationary trends.

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