OPEC+ agrees to slash oil production
- Date: 06-Oct-2022
- Source: Times of Oman
- Sector:Oil & Gas
- Country:Saudi Arabia
OPEC+ agrees to slash oil production
The 23-member OPEC+ alliance agreed on a major cut in oil production Wednesday during a meeting in Vienna.
The organization is made up of the 13 major oil producers of OPEC, as well as 10 other non-OPEC countries, including Russia.
Iran's OPEC Governor Amir Hossein Zamaninia said the group agreed to reduce production by 2 million barrels per day from November. The cut is likely to lead to a rise in oil prices.
The organization said in a statement that the decision was based on the "uncertainty that surrounds the global economic and oil market outlooks."
Saudi Energy Minister Abdulaziz bin Salman said that the organization was a "moderating force" and aimed "to bring about stability." He added that OPEC+ intends to remain "ahead of the curve" in the face of a "period of diverse uncertainties."
The alliance said it would renew the cooperation between OPEC members and non-members, which was due to expire at the end of the year.
Crude oil prices had dropped in recent months amid concerns over falling demand and the possibility of a global recession.
Prices had fallen below $90 per barrel, after soaring to $140 per barrel at the start of Russia's invasion of Ukraine. Brent North Sea crude, which serves