The oil cartel OPEC and its allies will limit oil production by two million barrels per day from November. This has been announced by representatives of the cartel. They hope that this will put a stop to falling oil prices. Oil prices have already fallen by 30 percent since June, out of fear of a recession and therefore less demand for oil.
This is the largest production cut since 2020. However, the impact on supply would be smaller, because several countries are already pumping less in practice. These include Nigeria, Angola and Russia.
US President Joe Biden is disappointed by the decision. National Security Adviser Jake Sullivan and Brian Deese, director of the National Economic Council, a government advisory body, said so. “Short-sighted,” says the White House.
At a time when preserving global energy supplies is paramount, the decision will be very negative for low-wage and middle-income countries, according to the White House.
Biden now wants to discuss with Congress what is possible in terms of interventions and powers to reduce the impact of OPEC on the oil price. For Biden’s Democratic party, cheaper fuel is a key issue in the run-up to November’s parliamentary election. High inflation is hurting the party in the polls.
The production cut “puts OPEC+ on par with Russia,” White House spokeswoman Karine Jean-Pierre added. The decision is a “mistake,” she said aboard Air Force One. The presidential plane is en route to Florida, where Biden will visit the areas hit hard by Hurricane Ian.
After the announcement by the OPEC+ countries, the oil price in London reacted with an increase that briefly rose to plus 2.4 percent to 93.96 dollars (95.11 euros) per barrel. That was the highest level in three weeks.
Then still European price ceiling for gas? Expert warns of “detrimental consequences” and “new problem” (+)
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