Oil prices briefly spike as Russia suggests more OPEC+ cuts will hit markets in 2024

• Oil prices briefly surged on Tuesday after Russia suggested more OPEC+ production cuts were possible in 2024.
• But oil prices later gave up gains and turned lower, with Brent crude and WTI both slipping about 0.8%.
• OPEC+ nations have already committed to a 2.2 million barrel-a-day production cut through the first quarter.

Oil prices temporarily spiked on Tuesday after Russia suggested OPEC+ could deliver even more production cuts next year.

Brent crude, the international benchmark, and West Texas Intermediate briefly rallied around 1%. But oil prices later gave up gains and turned lower, with Brent and WTI both slipping about 0.8%.

The price spikes came shortly after Russian Deputy Prime Minister Alexander Novak warned energy markets that OPEC+ could deliver more production cuts through the first quarter of next year, if the existing cuts didn't end up wiping out "speculation and volatility" in oil markets. 

OPEC+ nations have already committed to a 2.2 million barrel-a-day production cut through the first quarter of 2024.

The cartel has slashed its production multiple times over the past year, with the intent of boosting crude prices and smoothing out distortions in the oil market, Saudi Arabia's energy chief previously said.

Russia and Saudi Arabia have also taken extra measures to pressure the market's oil supply. The two nations agreed to voluntarily trim their production by 1.3 million barrels a day through the end of the year, which briefly sent oil prices to a 10-month high in September.

But since then, crude prices have tumbled about 20% amid signs of slowing global growth, China's continued economic woes, and recent skepticism that OPEC+ members will actually deliver on pledged output reductions.

Still, Goldman Sachs strategists said in recent last week that oil could potentially shoot back up to $100 a barrel in 2024 if energy markets see supply disruptions in the Middle East.