OPEC+ agreed to cut its collective output limit by 2 million barrels a day in an effort to stabilize the sliding oil prices. This is the biggest cut in production since 2020, but will have a smaller effect on global supplies than the projections suggest. OPEC wants prices to be at $90 per barrel, and Many member countries have based their 2023 budgets on that price, and “it would destabilize some economies” if that weren’t to happen. The US and Biden administration are not in agreement with this decision and plan to release an additional 10 million barrels of oil from the Strategic Petroleum Reserve in November, and to protect American consumers and energy security.
- OPEC+ nations agree to cut oil production to boost sliding prices