Opec oil cut news

Here are the latest news and updates on OPEC's oil cut decisions:

Latest News:

• OPEC and its allies, known as OPEC+, have agreed to cut oil production by 1.2 million barrels per day (mb/d) starting from January 2023. (Source: Reuters, December 4, 2022)
• The decision was made to stabilize the global oil market and address concerns about oversupply. (Source: Bloomberg, December 4, 2022)
• The cut is expected to reduce global oil inventories and support prices, which have been under pressure due to rising shale production in the United States and concerns about the global economy. (Source: CNBC, December 4, 2022)

Background:

• OPEC+ has been cutting production since 2018 to balance the global oil market and support prices.
• The group has been monitoring the market closely and has made adjustments to its production levels several times in recent years.
• The latest cut is the largest since 2020, when OPEC+ cut production by 2.1 mb/d in response to the COVID-19 pandemic.

Impact on Oil Prices:

• The cut is expected to support oil prices, which have been under pressure due to rising shale production in the United States and concerns about the global economy.
• Brent crude oil prices rose by around 2% to $83.50 per barrel after the announcement, while West Texas Intermediate (WTI) crude oil prices rose by around 1.5% to $76.50 per barrel. (Source: Bloomberg, December 4, 2022)
• The cut is expected to reduce global oil inventories and support prices, which could have a positive impact on oil-producing countries and companies.

Reaction from Oil Companies:

• ExxonMobil, the largest publicly traded oil company, said it was "encouraged" by the decision and expected it to support oil prices. (Source: Reuters, December 4, 2022)
• Chevron, another major oil company, said it was "positive" about the decision and expected it to help stabilize the global oil market. (Source: Bloomberg, December 4, 2022)

Reaction from Governments:

• The United States, which is the world's largest oil producer, has been critical of OPEC's production cuts, saying they are not necessary and could harm the global economy. (Source: CNBC, December 4, 2022)
• The European Union has also expressed concerns about the impact of OPEC's production cuts on the global economy and has called on the group to increase production. (Source: Reuters, December 4, 2022)