OPEC+ has announced its agreement to cut oil production for the first time in more than a year as it seeks to raise prices that have fallen due to recession fears.
And oil producers will cut production by 100,000 barrels per day, which is only 0.1% of global demand, in the month of October, and they also agreed that they can meet at any time to adjust production until the next meeting scheduled for October 5th. as quoted by Reuters.”
Earlier in the day, Russian news agency RIA Novosti reported, citing sources, that “the reverse decision of OPEC + was made after attempts by the G7 to convince oil-producing countries to increase production.”
On September 2, the G7 announced that it would “immediately set a ceiling on the price of Russian oil” and called on a “broad coalition” of countries to take part in setting a ceiling on the price of Russian oil.
This came at a time when the Russian authorities were warning against this measure. For its part, the Russian Presidency (Kremlin) stated that “Moscow will stop selling oil to countries that set a ceiling on the price of Russian oil”, noting that “setting a ceiling on the price of Russian oil will lead to great tension in the global energy market.”
Source: El Nashra