The Organization of the Petroleum Exporting Countries and its allies (OPEC+) is reportedly
considering cutting oil output by more than one million barrels a day when it next meets on
October 5.
The potential output reduction reflects growing concerns that the global economy is slowing
quickly as interest rates rise to lower inflation that is running at 40-year highs in many countries.
A final decision on any output cut won’t be made until oil ministers meet at OPEC’s Vienna,
Austria headquarters, their first in-person meeting since the pandemic began in March 2020.
The price of Brent crude oil, the international standard, rose above $125 U.S. a barrel following
Russia’s invasion of Ukraine this past February.
But since then, the price of oil has come down substantially and is currently trading at $88.34
U.S. per barrel.
Some analysts have expressed concern that a big cut in oil output will lead to another shock for
the global economy, which is already battling inflation and supply chain constraints.
The U.S. has been calling for greater oil production in recent weeks to lower costs for
consumers. Average gasoline prices across America have fallen in recent months after hitting a
record high of more than $5 U.S. a gallon in June.
OPEC+ has said that a press conference will be held after its October 5 meeting to discuss its
decision on oil output. It will be the group’s first public briefing since late last year.
