Oil Prices Reach Highest Level in Three Months after ‘OPEC+’ Deal

Oil Prices Reach Highest Level in Three Months after ‘OPEC+’ Deal

Oil prices have stabilized near the highest level in three months, after OPEC+ key ministers agreed oil production cuts of 2 million barrels per day. This is the highest oil cut since 2020.

Saudi Energy Minister Abdulaziz bin Salman said OPEC+ had needed to be pro-active as central banks around the world moved to "belatedly" tackle soaring inflation with higher interest rates.

He estimated that actual cuts could be around 1 to 1.1 million b/d.

For its part, the US President Joe Biden's administration criticized the deal, describing it as "shortsighted".

"The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas," a White House statement read.

In earlier statement, the White House said Biden would continue to assess whether to release more supplies from the Strategic Petroleum Reserve.

"In light of today's action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC's control over energy prices," the White House said.

Russian Deputy Prime Minister Alexander Novak said on Wednesday that Russia may cut oil production in order to offset negative effects from price caps imposed by the West over Moscow's actions in Ukraine.

Kremlin spokesman Dmitry Peskov said on Thursday that the OPEC+ group took its decision