The West is very alarmed by the plans of the states that are part of OPEC+significantly reduce oil production. Earlier there was information that we are talking about a reduction of one million barrels per day. But now there is information that a cut of two million barrels per day is being discussed.
Moreover, the chief executive officer of the world’s largest oil trader Vitol, Russell Hardy, believes that OPEC+ likely to announce supply cuts.
“Tomorrow there will be an OPEC+ meeting, which will likely begin to reflect on whether the supply is too abundant for current market conditions. At present, demand is clearly a concern,” Interfax quoted Hardy as saying.
Bloomberg notes that a two million barrels per day decline in oil production could be a shock factor for the global economy struggling with inflation.
It is worth noting that the possible reduction in OPEC+ oil production sharply contradicts the position of the United States. Washington has repeatedly turned to oil-producing countries – primarily Saudi Arabia – with requests to increase oil production.
At the same time, the US authorities expect to impose a price ceiling on oil imported from Russia. Moscow has previously stated that it will not supply energy to countries that support price cuts for oil and gas supplies.