OPEC leaves production increases behind and could now focus on cuts to achieve price stability and stabilize crude oil markets. File Photo.
On Monday, September 5, for the first time since 2020, OPEC+ has cut oil production quotas. The cut of 100,000 barrels per day occurs earlier than expected, as a result, the decision to cut production caused the slight 4% rise in the North Sea crude oil price.
OPEC+ (OPEC, Russia and other Moscow satellite countries) announced that oil production will return to August levels. Although this is a symbolic cut in oil supply, the intention is clear and worrying for importing countries: OPEC has left production increases behind and could now focus on cuts to achieve “price stability within the crude markets.”
OPEC: Crude Oil From Iran & Venezuela Would Ease World Supply Shortages
This surprise decision reverses the previously announced increase in production for September. The increase, a decision that came in response to Joe Biden’s plea, in the face of the suffocation suffered by the West due to high inflation, was largely caused by the rise in energy needs as a consequence of the war in Ukraine and the blockade against Russia.
This is obviously worrying for importing nations who are facing inflationary pressure from higher energy prices. But OPEC’s turn of policy is equally worrying, as it appears to end production increases and now focuses on cuts.
OPEC Will Not Bow to US Pressure, Declare Saudi Arabia and UAE
The risk of recession in the capitalist countries and the drop in oil imports to China are worrying trends for the organization. This reduction is an alert for everyone to monitor crude oil prices.
Translation: Orinoco Tribune
OT/FV/EF
Misión Verdad
Misión Verdad is a Venezuelan investigative journalism website with a socialist perspective in defense of the Bolivarian Revolution
