OPEC announced that they were going to cut oil production by 100,000 barrels per day in October – this is the same amount they increased production by in September.
In a statement, the group said the increase was only meant for September and not something that was meant to continue.
OPEC said Monday it would reduce oil production next month, the cartel’s first output cut since the depths of the pandemic, as it braces for a global economic slowdown to hit demand.
The Organization of the Petroleum Exporting Countries and allied oil producing nations, including Russia, agreed to shave 100,000 barrels per day off their production targets in October.
Just a month ago, the OPEC+ group agreed to increase production in September by the same small amount — equivalent to about 0.1% of global demand — after coming under intense pressure from the United States and other big oil consumers to do more to bring down energy prices and inflation.
Just a few weeks ago, Biden fist bumped Saudi Crown Prince Mohammed bin Salman ahead of the summit between the two leaders.
Saudi Arabia is a founding member of OPEC.
The cuts come weeks after U.S. President Joe Biden and Saudi Crown Prince Mohammed bin Salman engaged in a fist bump ahead of a much-anticipated summit between the two leaders. The meeting resulted in Riyadh agreeing to expand capacity by a tepid 100,000 bpd, one of the smallest production increases in the kingdom’s history. OPEC’s decision effectively reversed Saudi Arabia’s move this summer.