OPEC+ countries have decided to cut oil production by 2 million barrels per day from November 2022, should from the organization’s press release dated 5 October.
It is noted that the corresponding decision was made “in the light of the uncertainty associated with the prospects for the global economy and the oil market, as well as the need to improve long-term forecasts for the oil market.”
After that, the White House said that US President Joe Biden was disappointed by the “short-sighted” decision of OPEC + to cut oil production.
They added that, by order of the President, the Department of Energy will send an additional 10 million barrels from the strategic oil reserve to the market next month.
In addition, the White House accused OPEC + of solidarity with Russia.
Deputy Prime Minister of the Russian Federation Alexander Novak, in turn, noted that such a decision is necessary to balance the market before the seasonal decline in demand.
Analyst of Otkritie Management Company Irina Prokhorova, commenting on the decision of the organization, noted in an interview with Izvestia that this would not lead to a further reduction in production by Russian oil companies, but would positively affect the cost of Brent and Urals oil.
On the eve of the American columnist for The Hill, Simon Henderson noted that the reduction in oil production of OPEC + countries could have a bad effect on the Democrats during the midterm elections to the US Congress in November.
Meanwhile, on October 3, it was reported that at the meeting, OPEC + will discuss the reduction of oil production by only 1 million barrels per day.
On September 9, Saudi Aramco, the national oil company of Saudi Arabia, announced that oil prices would decrease for buyers from all regions except the United States. In particular, for clients from North-Western Europe and the Mediterranean countries, prices for almost all brands of Saudi oil will decrease by $2 per barrel.
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