OPEC+ decision to cut oil production ‘right call’: US report ahead of Nov. reduction

OPEC+ decision to cut oil production ‘right call’: US report ahead of Nov. reduction

A US-based consultancy firm has released a report on Friday that backs the October OPEC+ decision to cut oil production, finding that it was “the right call even if it was unpopular at the time.”

“Six weeks later, the shock of the Oct. 5 OPEC+ decision has worn off,” said a report titled ‘The October Oil Shock Wanes’ published by Foreign Reports Inc., a consulting firm that specializes in oil reports.

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OPEC+, the producer group comprising the Organization of the Petroleum Exporting Countries (OPEC) plus allies including Russia, announced its new production target in October after weeks of lobbying by US officials against such a move.

The US accused Saudi Arabia of kowtowing to Moscow, which objects to a Western cap on the price of Russian oil in response to its invasion of Ukraine, although, the Saudi foreign ministry stressed the “purely economic context” of the oil cut.

OPEC+ members also issued statements of support, after the White House accused Saudi Arabia of coercing members into supporting the decision to cut oil production.

OPEC said its output in October fell by 210,000 bpd to 29.49 million bpd, more than the pledged OPEC+