In a move that is set to significantly impact the global oil market, Saudi Arabia and other members of the Organisation of the Petroleum Exporting Countries (OPEC+) have announced today that they will be implementing further oil production cuts to the tune of 1.65 million barrels per day.
The group said the move to implement these cuts was aimed at supporting market stability.
According to industry analysts, today’s announcement by OPEC+ to implement a further oil production cut is expected to profoundly impact oil prices.
This move is predicted to tighten the supply of crude oil, which could lead to a surge in prices, thereby increasing inflationary pressures. This development has sparked concerns about a worsening cost of living crisis, potentially leading to an economic recession.
In October of last year, OPEC+, composed of the Organisation of the Petroleum Exporting Countries (OPEC) and allied producers led by Russia, agreed to implement output cuts of two million barrels per day from November until the end of the year.
A spokesperson for the US National Security Council has stated in response to the recent announcement of oil production cuts by several major exporting nations.
The spokesperson expressed concern over the timing of the decision, stating that “We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear.”