Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus Announced to reduce oil production by 1.16 million barrels per day. which surprised the market While analysts believe that the decision by OPEC Plus will result in a sharp increase in oil prices. And it might upset the US government’s desire for OPEC+ to increase oil production.
Previously, most analysts had expected that OPEC+ will maintain its oil production policy by reducing output by 2 million barrels per day until the end of 2023.
Archyde.com reports that This latest decision As a result, OPEC Plus’ overall oil production cuts were 3.66 million barrels per day. or 3.7% of global oil demand In a statement by OPEC Plus, it said: This voluntary production reduction will take effect from May until the end of 2023.
The decision was made on Sunday, just a day before the OPEC Plus Joint Ministerial Committee on Audit (JMMC) teleconference kicks off on Sunday. This (Apr. 3)
Analysts at Pickering Energy Partners predicted the unexpected cut in oil production by OPEC Plus. May result in a sharp increase in oil prices to $ 10 / barrel.
The OPEC+ decision was also expected to upset US President Joe Biden, as Biden worried that the OPEC+ production cuts would increase global oil prices. This might result in further increases in inflation in the United States.
By InfoQuest News Agency (03 Apr. ’23)
Tags: oil, oil price, OPEC, OPEC Plus
