OPEC countries are trying to drive oil prices back up

OPEC countries (including OPEC plus nations not formally part of the group) announced significant cuts to oil production last month—by up to 1.2 million barrels a day—in an attempt to rally falling prices. The decision, orchestrated by Saudi Arabia, immediately drove global prices up as much as 7%.


This move took the markets by surprise, with the OPEC countries saying they didn’t plan to cut production just days before the announcement. Russia, an OPEC member, has struggled to keep up domestic production after an exodus of multinational companies from the country, as well as US-imposed price caps on oil exports.

The US criticized OPEC’s move to increase oil prices, as the White House takes steps to keep energy costs low amid high inflation.


“We don’t think that the production cuts are advisable at this moment, given the market uncertainty. And we made that clear,” said John F. Kirby, the spokesperson for the National Security Council. “But we also don’t have a seat at that table.”

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