According to the latest information from OPEC +, from November 2022, OPEC + agreed to apply the largest reduction in oil production in more than 2 years.
The drop of 2 million barrels per day is believed to be the biggest drop since April 2020.
OPEC+ intends to keep prices high after seven years of low prices, analysts said.
Crude oil prices spiked above $100 a barrel in the first six months of the year due to Russia’s military campaign in Ukraine.
Prices then fell as much as 32% over the past 4 months due to concerns about the global economy. Brent crude at one point fell below $83 a barrel for the first time since January 2022.
This is the second consecutive month that OPEC+ has reduced oil production. Last month, down 100,000 barrels a day in October.
Today’s decision has cast a shadow on the G7 countries’ plan to impose a ceiling on the price of Russian oil.
The decision was made less than three months after the US President’s visit to Saudi Arabia.
OPEC+ members said their decision was a response to the global economic situation, especially China.
This decision by OPEC+ will affect many parties around the world.
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