Oil prices have fallen to a yearly low despite Saudi Arabia’s efforts to cut oil production. The OPEC+ alliance met on December 4th and agreed to keep oil production to 2 million barrels per day. Despite the decrease in oil production, which should in theory lead to increased oil prices, there was a fall in oil prices. Simon Henderson of the Washington Institute for Near East Policy said that this was “related to the global economy” and that it could reflect “market anxieties about the prospect of a recession.” However analysts argue that it is not going to cause a collapse in oil prices as it did in 2020 when there was a price war between Russia and Saudi Arabia which led to massive oil price drops.
- Oil Prices Fall To Lowest Since January Despite Saudi-backed Production Cut