Oil & Gas

OPEC, non-oil cartels agree to cut oil output by 2m barrels per day

Oil Production Exporting Countries (OPEC) including non-oil cartel members known as OPEC+ has agreed at a meeting in Geneva, Switzerland to cut oil output by two million barrels per day.


However, the White House is kicking against any major cut in production and President Joe Biden says cut will be a “total disaster” and unnecessary but right now it seems a matter out of control of the White House.


Russia, a member of the OPEC+ as a non cartel member and favours production cut to get higher prices for its oil export but Western European countries are set to put a price cap on its oil export.


However, petroleum analysts said the actual cut may come down to one million barrels per day. The current price for Brent crude is US$93.16 while the WTI crude is US$87.77.


The agreed cut is the deepest since the start of Covid-19 pandemic and it is expected to push demand higher than higher.



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