Energy ministers of the Organization of the Petroleum Exporting Countries (Opec) and allies have announced their countries will cut the amount of oil they produce by two million barrels per day – the equivalent of 2 per cent of global supply – in a decision expected to rise petrol prices all around the world.
The group said the cuts, which will come into place in November, were based on the “uncertainty that surrounds the global economic and oil market outlooks”.
The announcement marks the biggest reduction by the group since the height of the pandemic in 2020. Since then, Opec nations have been gradually unwound those record cuts. However, they have now taken the opposite approach, as to address the recent fall in oil prices, caused by the slowing down of the global economy.
“We are here to stay as a moderating force, to bring about stability,” said Saudi energy minister Abdulaziz bin Salman.
“We are going through a period of diverse uncertainties...