Crude oil declines following voluntary output cuts by OPEC+

The OPEC+ coalition, led by Saudi Arabia and Russia, has announced plans for a 1 million barrel cut to daily production, along with an extension of an earlier cut of equal size.

Oil prices fell after rising by over 1% earlier in the session after OPEC+ oil producers agreed to voluntary output cuts approaching 2 million barrels per day for early next year. Brent crude futures for January fell by 28 cents, or 0.3%, to $82.82 a barrel.

The front-month Brent contract, down about 6% on the month, expires later on Thursday. The additional cuts are not part of a binding agreement, but they will be made on a voluntary basis by member nations, adding doubt to their durability.

The development comes as US oil prices have dropped to an average of $3.25 for a gallon of regular. Analysts speculate that prices may not rise considerably at a time when inventories are flush and nations outside OPEC have expanded production capabilities.

Crude production in Texas fell by 0.1% to 5.57 million bpd, the lowest since July and the first-time production in the state has fallen since April, the EIA said.