OPEC+ slashes oil production to buoy prices

OPEC and its allies cut their oil production target by 2 million barrels per day starting in November. That’s about 2 percent of global oil production. The alliance, called OPEC+, had increased production slowly since a dramatic cut in 2020, but it scaled back over the past few months. OPEC+ also renewed cooperation with non-OPEC members, including Russia. President Joe Biden said in a statement that he is "disappointed" by the decision.  

What effect will the changes have? The cut could raise gas prices. But John Kirby, spokesman for the U.S. National Security Council, said the move might just align the stated goals of OPEC+ with its current production. OPEC+ missed its August quota by 3.6 million barrels per day. The alliance said in a statement that it cut production because of the “uncertainty that surrounds the global economic and oil market outlooks.”

Dig deeper: Read Esther Eaton’s report in The Stew on Western nations looking for energy sources to replace Russian oil.