OPEC cuts production by over 2 million barrels


Abdulaziz bin Salman, at the OPEC+ meeting on Oct. 5, image courtesy of NPR

Walt Brunson, Head Editor

  Following a meeting at the Organization of Petroleum Exporting Countries (OPEC) Secretariat in Vienna on Oct. 5, member nations made the decision to drastically cut oil production by over 2 million barrels per day.

   “Participating countries decided…to adjust downward the overall production by 2 mb/d from the August 2022 required production levels,” an OPEC press release stated. This major cut is set to start, “November 2022 for OPEC and non-OPEC participating countries,” the press release also detailed.

 OPEC’s released production data shows voluntary reductions across the board for all OPEC member nations and the non-OPEC countries that make up OPEC+. OPEC+ includes all 13 OPEC member countries along with several other oil-exporting nations including Russia and Mexico. Russia’s voluntary cut in production by over half a million barrels makes up a significant portion of the 2 million barrel cut, an even heftier figure considering Russia’s faltering oil market in light of the Ukraine war. 

   “Following its invasion of Ukraine, Russia had fewer buyers for its Ural crude oil, with some foreign governments and companies deciding to shun its energy exports,” a BBC article states.

   Yet, Russia’s decision has worked to its favor. Since the production cut announced on October 5, the OPEC basket price (average for OPEC member countries) of crude oil saw a sharp spike, increasing $5.08 per barrel only five days later. 

   Biden’s strong response to the production cut criticized OPEC’s decision in light of world conflicts.

   “The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine,” a White House press release stated. 

   Biden’s criticism of the oil production may seem contradictory with his vehement support of the Green New Deal.

   “The Biden Plan will ensure the U.S. achieves 100% clean energy,” Biden proclaims on his website.