By: Franyi Sarmiento, Ph.D., Inspenet, October 4, 2022
OPEC+ will consider an oil production cut of more than one million barrels per day (bpd) this week, OPEC sources reported, in what would be the biggest move since the Covid-19 pandemic to address weakness in the oil market.
According to Reuters, the meeting will take place tomorrow, Wednesday, October 5 against the backdrop of falling oil prices and months of severe market volatility that prompted top OPEC+ producer Saudi Arabia to say the group could cut production. production.
OPEC+, which combines OPEC countries and allies such as Russia, has refused to increase production to lower oil prices despite pressure from major consumers, including the United States, to help the world economy.
However, prices have fallen sharply in the last month due to fears over the global economy and the rally in the US dollar after the Federal Reserve raised rates.
The sources explained that the cut could exceed one million barrels per day. One of the sources suggested that the cuts could also include a further voluntary reduction in production by Saudi Arabia.
This material from the valoranalitik.com portal was edited for clarity, style and length.
Source : https://www.valoraanalitik.com/2022/10/02/opep-considera-recorte-petroleo-mas-1-millon-barriles/
Photo: ShutterStock
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