The OPEC+ cartel is set to further cut oil production to raise prices

To boost oil prices, the OPEC+ cartel has decided to cut production by 2 million barrels per day, the group said after the meeting. This affects prices at the pump, among other things. “There will be a few more cents at the pump in the coming weeks,” says oil expert Ronald de Zott.

It was the cartel’s biggest cut in oil production since 2020, when demand collapsed due to the coronavirus pandemic. Many OPEC+ members are already producing less oil than expected, meaning some action will be taken to meet the new targets. According to a Bloomberg report, only eight countries would actually have to cut production, and that would be only 880,000 barrels per day.

Also Read | OPEC+ likely to cut oil production sharply; Russia is happy, America is against

Acute Response VS

The US is unhappy with the decision by OPEC and its allies Russia (OPEC+) to limit oil production. Reduce production and raise prices. According to the US, the move is mainly a concession to Moscow, and the decision will also damage the global economy, it seems.

“Clearly, OPEC+ is aligning itself with Russia with today’s announcement,” the White House press secretary said in a statement. The US further described the decision as short-sighted. The US and Western allies are trying to isolate the Russian economy, which relies heavily on energy exports, in retaliation for its invasion of Ukraine.

Biden certainly wants to win the election, so gasoline prices should be low. That’s why Biden is yelling, we want you to pump more. But I think Russia is now more important to OPEC+ than the US,” says De Zott.