• 1440 Daily Digest

OPEC+ Cuts Oil Supply

An alliance of petroleum exporting countries and its allies, known as OPEC+, has agreed to slash oil output by 2 million barrels per day, starting in November. The cut, equal to 2% of the world's daily oil supply and the largest since April 2020, is meant to increase oil prices that have fallen due to recession fears. The global cost of a barrel has hovered around $90, down from $120 in June. OPEC+ (see 101) controls more than 40% of the world's oil production and previously has targeted a supply of 43.8 million barrels per day. The US, which is not a member of OPEC+ and has control over its own supply, opposed production cuts to help secure lower energy prices for US consumers. The US said it would release 10 million barrels of oil from its strategic petroleum reserve (see 101) in November. OPEC and its allies will meet again in December.

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