Ryan Payne, President of Payne Capital Management, Dan Geltrude, Founder of Geltrude & Company, and Phil Flynn, senior market analyst at Price Futures Group, react to OPEC’s announcement of oil production cuts in The Claman Countdown.
OPEC member countries and their allies are considering further cuts in oil production, which could lead to a rise in oil prices.
The group known as OPEC+, which includes allies like Russia, will meet on Sunday to discuss another round of production cuts for member countries, this time up to 1 million barrels a day, sources told Portal.
The cuts would come in addition to existing cuts of 2 million barrels per day and voluntary cuts of 1.6 million barrels per day announced in April, three sources told the media.
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OPEC is considering another round of production cuts. (Portal/Ramzi Boudina/File/Portal Photos)
“We discuss the whole package [of changes to the deal]said one of the sources.
That April announcement helped lift oil prices by about $9 a barrel to above $87, although those prices quickly fell to $76 on growing concerns about the global economy.
OPEC+ members and Russia-led allies are responsible for producing about 40% of the world’s crude oil, with their decisions having a dramatic impact on world prices.
The cuts would come in addition to existing cuts of 2 million barrels per day and voluntary cuts of 1.6 million barrels per day announced in April. (iStock / iStock)
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The cuts drew criticism from the Biden administration and Western countries. They argued that OPEC policies had pushed up energy prices and that they had sided with Russia in the face of the ongoing invasion of Ukraine. Meanwhile, OPEC+ countries say the West’s money-printing over the past decade is fueling inflation and forcing measures to protect their most valuable export.
OPEC+ countries say the West’s money-printing over the past decade is driving inflation and forcing measures to protect their most valuable export. (AP Photo/Lisa Leutner/File/AP Newsroom)
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Many Western countries responded to the invasion with sanctions against Russia and reduced or halted purchases of Russian oil. However, some Asian countries, including China and India, refused to join the sanctions and were Russia’s largest energy customers.