OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure

Oil prices have fallen to roughly $80 from over $120 in early June amid growing fears about the prospect of a global economic recession.

A group of some of the world's most powerful oil producers agreed to impose deep output cuts in order to spur a recovery in crude prices.

The decision to cut production by 2 million barrels per day was made at the first meeting of the group since 2020.

Saudi Arabia and Russia were expected to impose a production cut of between 500,000 and 2 million barrels.

The alliance slashed production by a record 10 million barrels per day in the early 2020s when demand crashed due to the Covid-19 epidemic. The oil cartel has gradually unwound those record cuts despite the fact that many of them are struggling to fulfill their quota.

Concerns about a global economic recession have caused the price of oil to fall to around 80 a barrel.

Despite repeated pressure from the U.S. president, the group decided to cut production in November.

West Texas Intermediate futures were almost 1% higher.

The next meeting of the organization will be in December.

The impact of the group's supply cuts for November is likely to be limited, with Saudi Arabia, the United Arab Emirates, Iraq and Kuwait likely to do most of the work, according to energy analysts.

As the energy market faces uncertainty due to European sanctions on Russia, it is difficult for the Organization of the Petroleum Exporting Countries to form a view more than a month or two into the future.

Ensuring an adequate pricing environment for both consumers and producers is the mission of the Organization of the Petroleum Exporting Countries. The decision to reduce output in the current environment is counter to the objective.

Consumers will be hurt by further squeezing already-tight supplies. He said that the selfishly motivated move was intended to benefit producers. At a time of great uncertainty in the oil market, the price of oil is prioritised over stability.

The director of research at Global X said to CNBC that the group's decision to impose production cuts could see oil prices rally back to $100 a barrel.

Despite concerns about the resilience of the global economy, the oil market is tight, all of which should help prices in the fourth quarter.

While a return to $100 oil is1-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-6556