The Organisation of Petroleum Exporting Countries (OPEC) and its allies on Wednesday agreed to cut monthly oil output by 2 million barrels per day in November.
It is the deepest cut by OPEC+ since the 2020 COVID pandemic. It decision comes despite pressure from the United States and other for the group to pump more.
OPEC said it took the decision “in light of the uncertainty that surrounds the global economy and oil market outlooks, and the need to enhance the long-term for the oil market.”
The development came after Brent crude dropped as low as $84/barrel in September, having hit $125/barrel back in June.
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OPEC had last month agreed to cut oil output by 100,000 barrels per day.
OPEC+ supply fell about 3.6 million barrels per day short of its output target in August. This means the latest cut is smaller than the shortfalls that canes as a result of Western sanctions on Russia, Venezuela and Iran and output shortfall in problems in Nigeria and Angola.
“The decision is technical, not political,” United Arab Emirates Energy Minister Suhail al-Mazroui was quoted by Reuters as saying ahead of the meeting.
“We will not use it as a political organisation,” he said, adding that concerns about a global recession would be one of the key topics.
Brent crude traded at $92 per barrel on Wednesday, after climbing on Tuesday.
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