The members of the Organization of Petroleum Exporting Countries and allies (OPEC+) confirmed, this Wednesday (5), the cut in oil production by 2 million barrels per day (bpd) starting in November. That’s the biggest cut since April 2020, when the pandemic began.
The group also informs that the current cooperation agreement has been extended until December 31, 2023.
In a statement after the ministerial meeting, OPEC+ justified the decision to cut supply “in light of the uncertainty surrounding the global economic outlook and the oil market, and the need to improve the long-term orientation for the oil market”.
The cartel also decided to hold ministerial meetings every six months, with the next one on December 4, 2022.
The joint ministerial monitoring committee (JMCC), in turn, must meet every two months, but may hold additional meetings, the text points out.
OPEC+ also reinforces the importance that the members of the agreement fully comply with what has been decided. It extended the compensation period for failures to comply until the end of March 2023.
The decision could undermine a plan by the Group of Seven rich countries (G7) to limit the price of Russian oil on the global market, a key part of the West’s economic battle with Moscow.
*With information from Dow Jones Newswires
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
