For a good answer requires adequate information, without this: pass...

Regards,

Laszlo

OPEC+'s decision to cut oil production is due to the current market situation. And we have a rational approach to how to balance the market. And here the main thing is that we are not talking about the formation of some kind of price, but about the sufficiency of supply for the market. So that, on the one hand, there is no surplus, on the other hand, there is no shortage. Also, the demand for oil began to fall in the EU countries, but on a global scale - it is at the same level. Decrease in production - will offset the risks from the oil price ceiling

Zeinab Ali Dashoor

Dear Professor,

Thank you for the interesting question.

The timing of the said decision by OPEC is important. It is just a few days before the mid term elections in US. Moreover, the US has been pressurizing the OPEC for reversing their decision. So, in my opinion, this seems to be a conscious effort to negotiate the US pressure.

Best regards,

Anamitra.

OPEC has refused to switch to bigger output increases as group sources have cited a lack of spare capacity among members to add more barrels as well as the need for further cooperation with Russia as part of the wider OPEC+ group.Aug 3, 2022

https://www.cnbc.com › 2022/08/03

OPEC+ set to approve minuscule oil output rise in rebuff to Biden - CNBC

In a meeting on Wednesday in Vienna, the OPEC+ group that comprises most of the world's top oil exporters agreed to cut production, on paper, by 2 million barrels per day, the biggest slash in production since the beginning of the COVID-19 pandemic in 2020.4 days ago

https://foreignpolicy.com › opec-cut...

OPEC to Cut Oil Production, Dealing a Blow to Biden - Foreign Policy

The intention of the OPEC Plus cut was to break the fall in crude prices since the summer,” said Bob McNally, an energy analyst at the Rapidan Energy Group. “If they succeed, then gasoline pump prices should also stop falling and range around current levels, until other market drivers impact the price.”4 days ago

https://www.washingtonpost.com › ...

OPEC moves toward cut in oil, threatening to send gas prices ...

In a statement, the group said the decision to cut production was made “in light of the uncertainty that surrounds the global economic and oil market outlooks.” Global oil prices, which soared in the first half of the year, have since dropped sharply on fears that a global recession will depress demand.4 days ago

https://www.cnn.com › energy › op...

OPEC announces big cut in oil production despite US pressure

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