On Tuesday, oil prices took a plunge during trading hours following reports from anonymous delegates indicating that OPEC+ plans to resume its regular oil market monitoring meetings, known as the Joint Ministerial Monitoring Committee (JMMC), with an online session slated for February 1.

This news triggered a sharp dive of about $2 in West Texas Intermediate (WTI) crude futures, hitting a low of $71.44 per barrel. The day's trend shifted to an overall decline of 0.2%, with the drop in oil prices widening later; WTI saw an extended decrease of 1.4%, while Brent crude extended its decline to 1%.

The JMMC, which typically convenes bi-monthly, allows ministers to review the state of the oil market. The full assembly of the 22-nation coalition is set to meet in Vienna on June 1.

OPEC+ commenced a new round of production cuts this month to avoid a global supply glut and thereby boost oil prices. The market anticipates a significant slowdown in oil consumption growth this year, fueling concerns over a surplus supply. OPEC+ has further slashed supplies by 1 million barrels per day, with Saudi Arabia extending its additional voluntary cut of the same amount, and Russia expanding its oil export cuts to 500,000 barrels per day.

Previous negotiations at the OPEC+ meeting in November were challenging, leading to a four-day postponement until Thursday, November 30, and a switch from an in-person meeting in Vienna to an online one. The focus of the disagreement was on African oil-producing countries, with nations like Nigeria and Angola causing obstacles regarding production quotas. After over a week of talks, Nigeria compromised, while Angola announced its refusal to implement the production cuts and declared its exit from OPEC in late December.

Over the last year, U.S. crude fell by 10.73%, and Brent by 10.32%, marking a year-end decline after two consecutive years of increases. In December, oil prices found some support due to the Federal Reserve's dovish turn and escalating tensions in the Red Sea region.