Over the weekend, oil markets shuddered over news that Saudi Arabia and other oil-producing countries would further cut crude oil outputs of around 1.16 million barrels a day. The move came as a massive surprise, and it helped push up prices by $5 per barrel to above $85 per barrel.
The pledge brings the total volume of cuts by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, to 3.66 million bpd, according to Reuters calculations. That’s equal to 3.7% of global demand.
Washington has called this move inadvisable.
The West has repeatedly criticized OPEC for manipulating prices and siding with Russia, despite the war in Ukraine.
The United States is considering passing legislation known as NOPEC, which would allow the seizure of OPEC’s assets on U.S. territory in the event market collusion is proved.
OPEC+ has criticized the International Energy Agency, the West’s energy watchdog in which the United States is the biggest financial donor, for releasing oil stocks last year, a move it said was necessary to bring down prices amid fears sanctions would disrupt Russian supply.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
Market Recap Week of 3/27/2023 Through 3/31/2023