The organization has not made such significant cuts since 2020 and the Covid-19 pandemic.
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Member States of ArtOrganization of Petroleum Exporting Countries (OPEC), At a meeting on Wednesday, October 5 in Vienna (Austria), they decided to sharply reduce production quotas to support prices hit by fears of a recession. Thirteen OPEC members, led by Saudi Arabia, and ten of their partners, led by Russia, agreed to cut “two million” barrels per day for November, the alliance said in a statement.
“This is the biggest reduction since the start of the pandemic” from Covid-19, – responded Srijan Katyal from ADSS brokerage firm. She probably will “raise prices”, he added, contradicting the West’s efforts to curb the rapid rise in energy costs that is hampering global growth. The two global crude oil benchmarks have indeed lost ground in recent weeks, hovering around $90 a barrel, far from the peak recorded in March at the start of the war in Ukraine (almost $140).
Not surprisingly, the news provoked a terrible reaction from Washington. Joe Biden is “disappointed by the short-sighted decision of OPEC”according to a statement released by the White House on Wednesday. The US president has been fighting for months to stop soaring prices that are eroding household purchasing power, even going so far as to travel to Riyadh in July on a highly controversial visit.