Opec oil producers announce surprise cut in output
(BBC) Several of the world’s largest oil exporters have announced surprise cuts in production in a move which is expected to push up prices.
Saudi Arabia, Iraq and several Gulf states said they were cutting output to support market stability.
Oil prices soared when Russia invaded Ukraine, but are now back at levels seen before the conflict began.
However, the US has been calling for producers to increase output in order to push energy prices lower.
High energy and fuel prices last year helped to drive up inflation – the rate at which prices rise – putting pressure on many households’ finances.
Responding to news of the latest cuts, a spokesperson for the US National Security Council said: “We don’t think cuts are advisable at this moment given market uncertainty – and we’ve made that clear.”
The reduction in output – which amounts to more than one million barrels per day – is being made by members of the Opec+ oil producers. The group accounts for about 40% of all the world’s crude oil output.
Analysts said they expected oil prices – which are currently at about $80 a barrel – to rise as a result. Oil broker PVM told Reuters that prices could rise by “as much as $3” a barrel, while the head of investment firm Pickering Energy Partners said prices could jump by $10.