Oil Prices Soar As OPEC+ Shocks The Market

Cat:

Related stories

“Stay Away from National Assembly,” Senate warns Natasha

By Abiola Olawale The Nigerian Senate has issued a s...

Awujale’s burial and Aso Rock’s graveyard politics By Festus Adedayo

By Festus Adedayo “Why should I bother myself with what...

Three deaths: Gainers and losers By Bolanle BOLAWOLE

By Bolanle BOLAWOLE turnpot@gmail.com 0705 263 1058. The death of three...

(VIDEO) Applause as Billionaire Business Icon, Leemon Ikpea’s State-of-the-art Medical Facility in Ewatto, Nears Completion 

https://m.youtube.com/watch?v=UCKl8rwMdSM&t=12s By Abiola Olawale The people of Ewatto in Esan South...

Before you accept his proposal, By Funke Egbemode

By Funke Egbemode If the man you are considering spending...
  • On Sunday, OPEC+ announced a surprise production cut of some 1.16 million barrels per day, increasing the total OPEC+ cut to 3.66 million bpd.
  • Oil prices soared on the news, climbing by 8% initially before falling back slightly.
  • The U.S. criticized the move, saying that it wasn’t wise to make cuts given the current market uncertainty.

By Irina Slav 

OPEC+ on Sunday surprised oil markets with an announcement that it will reduce its output further, by some 1.16 million barrels daily.

Reuters noted in a report that with the new cut, the total output reduction amount from OPEC+ will come in at 3.66 million barrels daily, or 3.7% of global oil demand.

The Financial Times reported that oil prices had gained 8% immediately after the announcement, noting Saudi Arabia’s share of the cuts would be almost half of the total, at 500,000 bpd.

Russia, meanwhile, said it would extend the production cuts of 500,000 bpd it announced earlier this year until the end of 2023.

The FT noted the unusual nature of the announcement as it was made outside the group’s regular monthly meetings, the next of which is taking place today.

The U.S. administration expectedly criticized the move, saying it was not the time to cut production.

“We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear,” a spokesperson for the National Security Council said, as quoted by The Hill.

“But we’re focused on prices for American consumers, not barrels, and prices have come down significantly since last year, more than $1.50 per gallon from their peak last summer,” the spokesperson, who was not named in the Hill report, added.

The move by OPEC+ to curb production further came after the sharp drop in oil prices last month, largely driven by concern about the banking industry after a couple of sizeable bank collapses in the United States.

The events sparked concern about the stability of the Western banking system, reinforced by the near-death experience of Credit Suisse, and fear of a recession that would affect oil demand.

“OPEC is taking pre-emptive steps in case of any possible demand reduction,” Energy Aspects’ Amrita Sen told Reuters. NB: Irina Slav wrote this article for Oilprice.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
"Stay Away from National Assembly," Senate warns NatashaAwujale’s burial and Aso Rock’s graveyard politics By Festus AdedayoThree deaths: Gainers and losers By Bolanle BOLAWOLE(VIDEO) Applause as Billionaire Business Icon, Leemon Ikpea's State-of-the-art Medical Facility in Ewatto, Nears Completion Before you accept his proposal, By Funke EgbemodeOil Price Volatility and Higher Valuations Cause M&A Activity to SlowDrama as UNIMAID ASUU Opposes Tinubu, Vows To Contest Renaming of Varsity After Late BuhariFalana Lashes Okpebholo, Warns: "Withdraw Your Statement, Apologize to Obi immediately."NDDC's N6 trillion: SERAP Drags Tinubu to Court Over Non-Release of Forensic Audit ReportFears Soars As PDP Confirms Assassination Attempt on Anambra Gov Candidate, EzenwaforBreakdown as FAAC Disburses N1.818 Trillion in June 2025 2027: Osun Senator, Fadeyi Dumps PDP, Amid Adeleke's Defection SpeculationsRanked: The 40 Countries With the Best Culture and HeritageEFCC Probing 18 Sitting Governors in Major Corruption Crackdown, Olukoyede RevealsNatasha Vows to Return to Senate Tuesday, Despite Akpabio's Appeal
X whatsapp