Small trim to world oil supplies as prices fall by OPEC+

INA - SOURCES 

OPEC and allied oil-producing countries, including Russia, made a small trim in their supplies to the global economy Monday, underlining their unhappiness as recession fears help drive down crude prices along with the cost of gasoline, to drivers’ delight.

The decision for October rolls back a mostly symbolic increase of 100,000 barrels per day in September. It follows a statement last month from Saudi Arabia’s energy minister that the OPEC+ coalition could reduce output at any time.

OPEC+ has stuck with only cautious increases to make up for deep cuts made during the COVID-19 pandemic, which were finally restored in August.

Since then, growing worries about slumping future demand have helped send oil prices down from June peaks of over $120 per barrel, cutting into the windfall for OPEC+ countries’ coffers but proving a blessing for drivers in the U.S. as pump prices have eased.

The supply cut for October is only a small fraction of the 43.8 million barrels per day under OPEC+ production goals, but wrong-footed several analysts’ predictions of no change in output. Oil prices jumped after the announcement.