The OPEC+ monitoring committee has approved a record cut in oil production for the first time since 2020. This was reported by Reuters, citing sources. The agency claims that delegates from the Organization of the Petroleum Exporting Countries (OPEC) have agreed to cut production by 2 million barrels per day.
Such a decision could be beneficial for Russia, especially against the background of the introduction of an oil embargo against Moscow. Against the backdrop of Reuters reports, oil quotes began to grow, the price of Brent oil reached $92.9 per barrel. The American benchmark WTI jumped 0.6% and exceeded $87 per barrel for the first time in a month. The American authorities tried to dissuade some members of the cartel not to cut production in order to keep oil prices at an acceptable level, but OPEC decided otherwise.
On Wednesday, October 5, it became known that European countries approved the introduction of a ceiling on prices for Russian oil. The mechanism involves a ban on the supply of oil and oil products to third countries using tankers if the price exceeds the established ceiling. Experts have repeatedly warned that such a measure could provoke an increase in oil prices on world markets. Now, oil prices will be under pressure from two sides: sanctions against Russia and OPEC's decision to cut production.
Once again, Russia was directly involved in the OPEC summit, which, together with Saudi Arabia, lobbied for a record cut in production in order to increase the average cost of a barrel on world markets.