OPEC+ slashes oil production to buoy prices

OPEC announced it will cut their oil production target by 2 million barrels per day starting in November.
OPEC announced it will cut their oil production target by 2 million barrels per day starting in November. (Shutterstock)

OPEC and its allies cut their oil production target by 2 million barrels per day starting in November. That’s about 2% of global oil production.

The alliance, called OPEC+, had increased production slowly since a dramatic cut in 2020, but it scaled back over the past few months. OPEC+ also renewed cooperation with non-OPEC members, including Russia. President Joe Biden said in a statement that he is “disappointed” by the decision.  

What effect will the changes have? The cut could raise gas prices. But John Kirby, spokesman for the U.S. National Security Council, said the move might just align the stated goals of OPEC+ with its current production. OPEC+ missed its August quota by 3.6 million barrels per day.

Get The Latest News

Don't miss our top stories every weekday in your inbox.

The alliance said in a statement that it cut production because of the “uncertainty that surrounds the global economic and oil market outlooks.”

This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.

Subscribe
Notify of
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
TeachYourChildren

Check Gas Buddy! Most stations in AC/GNV have already raised prices by 10¢ per gallon as of 30 minutes ago. O’Biden sure didn’t do a very good job of kissing OPEC’s butt last month! Now he is going to drain the Strategic Petroleum Reserve and sell it everywhere but in the US, including China! Don’t tell me the DOE cannot tell China to go pound sand when it comes to outbidding US companies for this resource, the draining of which will very probably have more negative economic impact on the US economy and hard working Americans! All he knows how to do is blame everyone but himself for his (his handlers) failures since he took office! What a POS!