OPEC+ cut oil production fearing economic downturn

The influential energy alliance known as OPEC+ yesterday agreed to cut oil production by about 10,000 barrels per day, starting from October.

According to news agencies and analysts, the production cut surprised the international energy markets at a time of considerable dispute between Russia and the West over the latter’s war in Ukraine.

Meanwhile, the energy alliance left the door open for more talks and discussions over production and prices, based on market updates.

During their monthly meetings, members of OPEC+ discussed calls from the West to increase their production in order to contain the rising oil prices and face the worst economic inflation in decades.

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Russia’s Deputy Prime Minister Alexander Novak said the OPEC+ oil output cut was merely a reflection of expectations of a weaker global economic growth, VOA reported.

Analysts expected that oil prices have been dragged down by a potential supply boost from Iranian crude returning to the market if Tehran is able to revive its 2015 nuclear deal with global powers.

Iran is expected to add one million barrels per day to supply, or one per cent of global demand, if sanctions are eased.