The OPEC + agreement, which includes the Organization of the Petroleum Exporting Countries (OPEC) and independent producers including Russia, will put pressure on supplies in a market already suffering from a tight supply, according to “Reuters”.
Saudi Arabia said the production cuts, equivalent to about two percent of global supply, were in response to higher interest rates in the West and a weak global economy.
price change
Brent crude futures rose slightly by 8 cents, or 0.1 percent, to $93.45 a barrel by 0530 GMT.
West Texas Intermediate crude futures settled at $87.78 a barrel, with gains of about 2 US cents.
American response
The administration of US President Joe Biden criticized the agreement, describing it as “short-sighted”.
The White House said it would consult Congress about additional paths to reduce OPEC + control of energy prices, an apparent reference to legislation that could expose group members to antitrust lawsuits.
In a separate context, Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia may reduce oil production, in an attempt to counter the repercussions of the West’s imposition of a ceiling on Russian energy prices due to the Ukraine crisis.
The US Energy Information Administration said the decline in US oil inventories last week also supported prices.
Inventories fell by 1.4 million barrels in the week ending September 30 to 429.2 million barrels.
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