At the meeting of OPEC+, the 24 oil producing countries including Russia announced the cut of oil production by 2 million barrel per day, comes at a point of time when already the World is battling soaring energy costs.
OPEC+, formed in 2016, includes the 13 Organization of Petroleum Exporting Countries members and 11 other non-OPEC members. In a statement, the group justified the decision due to “uncertainty that surrounds the global economic and oil market outlook.”
It’s unclear how much of a price increase the supply cut would cause. The world consumes up to 100 million barrels of oil a day, so taking 2 million off the market would have a noticeable effect. After the announcement, the price of Brent crude, the international benchmark, rose 1.7 percent, reaching $93.29 a barrel.
At the start of the year, Brent prices were close to $79 a barrel. It soared above $127 in March, two weeks after the Russian invasion of Ukraine – the highest in 14 years. Brent crude futures for December delivery rose $2.99 to $88.13 a barrel, a 3.5 percent gain, by 12:50pm ET (16:50 GMT). United States West Texas Intermediate crude rose $3.33, or 4.2 percent, to $82.82 a barrel.
Source: Al Jazeera