GlobalWide News
The Wall Street Journal: OPEC+ has agreed to a significant production cut of an additional million barrels a day, likely driving up oil prices. This decision includes an extension of Saudi Arabia’s existing cut of 1 million barrels a day since June. The combined effect of these cuts is expected to increase oil prices, especially amid heightened geopolitical tensions in the Middle East. The U.S. previously criticized OPEC+ for a similar decision last year, perceiving it as support for Russia’s invasion of Ukraine. The backdrop of the current decision involves Arab nations’ criticism of Israel’s offensive in Gaza, which started in response to Palestinian militant attacks.
Brent oil prices rose by about 1.5% to over $84 a barrel following the announcement. The OPEC meeting, held virtually due to disagreements over the cuts, saw heated debates among members. The details of the compromise were not clear, but Saudi Arabia had pushed for new cuts due to lower oil prices and concerns over crude oil demand. The meeting also led to Brazil, South America’s largest oil producer, joining OPEC+. Geopolitical tensions continue to escalate in the region, with incidents involving Yemeni rebels and Iraqi militias. This OPEC decision coincides with the UN climate summit in Dubai, where the role of oil-producing countries in emissions reduction is a key topic.
The entire article can be read at the link OPEC+ Agrees to Significant Oil-Production Cut – WSJ
