Opec+ makes big oil cut to boost prices; pump costs may rise – The Peninsula

Opec+ makes big oil cut to boost prices; pump costs may rise – The Peninsula

FRANKFURT: The Opec+ alliance of oil-exporting countries on Wednesday decided to sharply cut production to support sagging oil prices, a move that could deal the struggling global economy another blow and raise politically sensitive pump prices for US drivers just ahead of key national elections.

Energy ministers meeting at the Vienna headquarters of the Opec oil cartel cut production by 2 million barrels per day starting in November at their first face-to-face meeting since the start of the COVID-19 pandemic.

Besides a token trim in oil production last month, the major cut is an abrupt turnaround from months of restoring deep cuts made during the depths of the pandemic and could help alliance member Russia weather a looming European ban on oil imports.

In a statement, Opec+ said the decision was based on the "uncertainty that surrounds the global economic and oil market outlooks.”

The impact of the production cut on oil prices - and thus the price of gasoline made from crude - will be limited somewhat because Opec+ members are already unable to meet the quotas set by the group.

The alliance also said it was renewing its cooperation between members of the Opec cartel and non-members, the most significant of which is