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Oil-producing countries want to cut production for the first time in a year

2022-09-05T14:48:06.089Z

It's a small but surprising step: In October, the Opec+ oil cartel wants to slightly reduce its production volumes. The reason is apparently the prices that have recently fallen as a result of the recession.



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Oil production in Saudi Arabia (archive)

Photo: Ali Haider / epa / dpa

The oil-exporting countries united in the OPEC+ cartel have announced a cut in their production for the first time in a year.

The 23 countries had agreed to produce 100,000 barrels less oil per day in October than in September, the group said after a ministerial meeting in Vienna.

She referred to falling oil prices due to fears of a global recession.

The Opec+ group consists of the Opec countries led by Saudi Arabia and ten other partner countries, above all Russia.

Although the announced measure is only a slight throttling, the step is still surprising.

Observers had instead expected a slight increase in production.

The move follows a statement by Saudi Arabia's energy minister last month that production could be reduced "at any time."

Lower prices

Oil producers like Saudi Arabia had initially resisted calls to pump more oil in a bid to lower gas prices and ease the burden on consumers.

Among others, US President Joe Biden had made such an appeal to relieve American drivers.

Now, because of the expected economic crisis, prices are falling all by themselves - and despite concerns about a loss of Russian oil.

In August, prices fell for the third month in a row.

The reason for this is concern that the global economy is growing more slowly and that demand for oil and oil products is therefore falling.

On Monday, the price for the North Sea Brent variety was $96.24 (96.98 euros) and for WTI $89.66.

rai/AFP

Source: spiegel

All business articles on 2022-09-05

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