OPEC+, which is the Organization of Petroleum Exporting Countries (OPEC) plus other leading oil producers that are not members of OPEC, announced a production cut. The reduction in output is significant given the subsequent increase in oil prices will hinder the Federal Reserve's current mission to lower inflation. Energy prices comprise about 7.5% of the consumer price index (CPI).
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OPEC Announces the Biggest Cut to Oil Production Since the Start of the Pandemic (Micro News for October 8, 2022 – October 14, 2022)
The Organization of Petroleum Exporting Countries (OPEC) and its allies announced it would cut oil production by 2 million barrels of oil per day, which is about 2% of global oil demand. This cut is the largest OPEC+ decline in output since before the pandemic. The move could push gas prices higher immediately prior to the U.S. midterm elections.
OPEC and Allies to Boost Production After US Calls Saudi Arabia (Micro News for April 3, 2021 – April 9, 2021)
OPEC, or the Organization of Petroleum Exporting Countries, and its alliance of other non-OPEC oil exporters agreed to increase output over the next few months. The OPEC+ alliance has been restricting output by about eight million barrels of crude oil per day in recent months. The move to gradually increase output came after US energy secretary Jennifer Granholm called Saudi Arabian energy minister Prince Abdulaziz Bin Salman and discussed the importance of affordable energy to consumers. However, Bin Salman denies having this discussion with Granholm.
OPEC and Russia Agree to Start Pumping More Oil Next Month (Micro News for December 5, 2020 – December 11, 2020)
The Organization of Petroleum Exporting Countries (OPEC), Russia, and other oil exporting nations agreed to begin increasing output starting in January 2021. The OPEC+ group stated it would increase "production by 0.5 million barrels per day." The prospect of a vaccine for coronavirus increases the likelihood that oil demand will move higher.
Pearson Economic News 