Monday, March 4

The OPEC cartel and Russia cut oil production again to push up prices

The Organization of Petroleum Exporting Countries (OPEC) and its allies, led by Russia, which together form the group known as OPEC+, have decided to undertake, starting next November, a reduction of 2 million barrels of crude oil per day compared to the supply levels reached last August to push prices up.

Oil falls to pre-war prices in Ukraine but gasoline remains 12% more expensive

Know more

In a statement published at the end of the meeting of the ministers of the countries of this cartel, which was held this Wednesday in Vienna for the first time in person since 2020, OPEC + has confirmed its decision to jointly pump a total of 41,856 million barrels per day, compared to 43,856 million in August. 25.416 million from OPEC, compared to the previous 26.689 million, while countries outside the organization will produce 16.440 million.

Saudi Arabia and Russia will extract 10.478 million barrels of crude per day, respectively, compared to the quota of 11.004 million previously agreed, which implies a downward adjustment of 526,000 barrels per day each. Oil futures traded on financial markets have started to rise since the decision became known.

The cut directly harms European countries, which need to import almost all their oil, which is also traded in dollars, at a time when the euro is trading at lows against the US currency.

On the other hand, the United States is considering banning the export of oil and derivatives precisely to reduce the price within its borders, which adds up against the eurozone, because it would mean less supply in international markets.

Next meeting on December 4

Likewise, the countries have decided to adjust the frequency of the monthly meetings so that they are every two months in the case of the Joint Ministerial Follow-up Committee, while the OPEC and non-OPEC ministerial summits will be every 6 months, although the Committee will have the authority to hold additional meetings, or to request a summit at any time to address market developments if necessary.

In this way, the ministers of the crude exporting countries have agreed to hold the next OPEC and non-OPEC summit on December 4, 2022.