Oil prices plummeted on Monday as doubts emerged regarding the feasibility of the Organization of the Petroleum Exporting Countries (OPEC) reaching a credible agreement to curb production. The uncertainty surrounding the commitment of individual member states to adhere to the proposed cuts weighed heavily on market sentiment.

Analysts cited several factors contributing to the price decline, including:

• Concerns over whether all OPEC members would fully comply with agreed-upon production quotas.
• Skepticism about the depth of the proposed cuts and their potential impact on global oil supply.
• The possibility of increased production from non-OPEC countries offsetting any reductions made by OPEC members.

The lack of a firm agreement and the conflicting statements from various OPEC representatives have created a climate of uncertainty in the oil market. Traders are closely watching for any signals that could indicate the likelihood of a successful deal.

The upcoming OPEC meeting is expected to be a crucial event, where member states will attempt to finalize the details of the production cut agreement. The outcome of this meeting will likely have a significant impact on oil prices in the short to medium term.

Further complicating the situation is the rising oil production in countries like Libya and Nigeria, which are exempt from the proposed cuts due to their internal conflicts. This increased output could further undermine OPEC’s efforts to rebalance the market.