OPEC+ agrees to deep cut on oil production

Multinational

VIENNA, October 6, 2022 – OPEC+ has agreed to cut oil production by 2 million bpd in light of rising interest rates and a weak global economy, the intergovernmental hydrocarbons production watchdog announced on Wednesday.

The cuts represent around 2% of global oil production and are the largest cuts since the Covid-19 pandemic in 2020.

The reductions will begin in November 2022 for OPEC countries, with OPEC+ countries following different criteria.

Following the agreement, oil prices rose to a three-week high on Wednesday.

The decision was made at the 33rd OPEC and non-OPEC Ministerial Meeting in Vienna, Austria, the first held in person since the Covid-19 pandemic.

The decrease in production has been criticised by the US government.

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