OPEC+ meeting ends with agreement to cut oil production even further
After several days of intense negotiations, the Organization of the Petroleum Exporting Countries and its allies (known as OPEC+) has agreed to cut oil production by an additional 500,000 barrels per day in an effort to prop up prices and balance the market.
The move follows a meeting in Vienna, where members debated production quotas and a new cut to stem declining oil prices. Saudi Arabia and other OPEC members clashed over production quotas, with some arguing for deeper cuts to boost prices.
U.S. crude oil prices slumped to a near five-year low in early trading, prompting OPEC+ producers to weigh more cuts. The Associated Press reports that the additional cut is intended to stabilize the market and keep prices from falling further.
The decision was not without its critics, however. The Wall Street Journal reports that some members of OPEC+ expressed concern that deeper cuts could harm the organization’s long-term viability by driving up prices and reducing demand for oil.
Despite these concerns, OPEC+ decided that the benefits of a deeper cut outweighed the risks, and the organization has committed to the additional production reduction through the first quarter of 2024.
The agreement is being hailed as a victory for OPEC+ and a sign of the organization’s continued relevance in global energy markets. But the jury is still out on whether the cut will be enough to reverse the recent decline in oil prices, and many analysts are predicting that OPEC+ may need to take further action in the months ahead to maintain stability in the market.