OPEC+ sticks to oil production cuts

by ian

An influential organization governing global oil isn’t backing down from production cuts.

The Organization of Petroleum Exporting Countries, known as OPEC+, announced limits on oil production back in April. Those cuts equal 3.66 million barrels per day, which is about 3.7% of global demand.

The 23 OPEC+ counties announced Sunday that they will follow these cuts through the end of 2024, despite criticism from the Biden administration.

Saudi Arabia also announced a new voluntary 1 million-barrel-per-day cut on top of the OPEC+ plan.

Phil Flynn, an analyst for Price Futures Group, says the production cuts are a slap in the face to the Biden administration. He also predicts that gas prices will soar this summer and be negatively effected for as long as Saudi Arabia keeps its production slashed.