The Biden administration’s scramble to avoid another surge in US gas prices took a major hit Wednesday after OPEC and Russia approved a significant cut in oil production.
Oil jumped to $87 on Wednesday after the OPEC+, a group of oil-producing nations that includes Russia, slashed output limits by 2 million barrels per day. The cut would mark the largest drop in OPEC+ oil production since 2020 and add additional pressure to global energy markets already reeling from the Russia-Ukraine conflict, Bloomberg reported.
The cuts were approved even after the Biden administration attempted a “full-scale pressure campaign” in a bid to convince OPEC+ not to slash output , CNN reported, citing sources familiar with the matter.
OPEC+ ministers are seeking to bolster the price of oil, which has declined in recent months as fears mount about a potential global recession. Experts had already warned that tightness in energy markets this winter – with Europe on the verge of a full-blown energy crisis – could send oil prices much higher.
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Article URL : https://nypost.com/2022/10/05/opec-and-russia-agree-to-slash-oil-output-by-2-million-barrels-a-day/