Defying US, OPEC+ to reduce oil production by 2 million bpd

Angering the US, a group of the world’s largest oil-producing countries, OPEC+, decided yesterday to cut oil production by 2 million barrels per day (bpd) from November.

Biden had traveled to Saudi Arabia in July to request more oil, among other things.

OPEC+, which includes Saudi Arabia and Russia, hopes that curbing the supply would boost oil prices. In June this year, fearing a global economic recession, oil prices had fallen to $80 a barrel after climbing to $120 a barrel. The international benchmark Brent crude is around $93.

OPEC+ members are looking at the cut as a way to protect profits.

Apart from boosting prices, the reductions would benefit the Middle Eastern member states, to whom Europe has turned for oil after leveling sanctions against Russia since it invaded Ukraine.

White House is ‘disappointed’
President Joe Biden was “disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” the White House said in a statement.

According to The New York Times, Moscow could be influencing OPEC to make it more expensive for the West to extend energy sanctions on Russia.

Production cuts and the subsequent rise in oil prices can be particularly dangerous to Biden, who is trying to reduce inflation rates before the November midterm elections. The move can be seen as a sign that the oil producers are aligning with Russia.