OPEC+ rebuked by U.S. after cutting output to keep prices high
BNN Bloomberg
OPEC+ agreed to make a large production cut to keep oil prices high, drawing an immediate rebuke from the U.S.
The move was defended by ministers from the producers group as necessary to protect the oil industry and their own economies from the risk of a global slowdown. The White House slammed the decision and indicated that it would respond to the supply reduction.
The Organization of Petroleum Exporting Countries and its allies agreed on Wednesday to reduce their collective output by 2 million barrels a day from November. The outdated production baselines used to measure the curbs means that actual oil supply will only fall by about half that amount, but it’s still the biggest cut since 2020 that risks adding another shock to the world’s economy.
Brent crude, the international benchmark, jumped as much as 2.4 per cent to a two-week high of US$93.96 a barrel.
