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OPEC+ Over One Million Barrels Of Oil Will Be Cut

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OPEC+ Over One Million Barrels Of Oil Will Be Cut

(CTN News) _ According to delegates, OPEC+ will consider cutting output by more than 1 million barrels a day when it meets in Vienna on Wednesday.

An increase in the reduction would indicate the extent to which the global economy is slowing rapidly as a result of the rapid tightening of monetary policy.

As a result of a strong dollar, prices have also been affected. Until the ministers meet, a final decision on the size of the cuts will not be made, the delegates stated

If the reduction is greater than expected, it will reflect the extent of concern about the global economy slowing fast in the face of rapidly tightening monetary policy.
The strength of the dollar has also contributed to price increases. The size of the cuts will not be determined until the ministers meet, according to the delegates.
As a result of the outbreak of the Russian-Ukrainian war in February, Brent crude prices spiked above $125 a barrel.
 It has since dropped to $85, tempering the spectacular windfall that was enjoyed by Saudi Arabia, Russia, the UAE and other members of the coalition as a result of the oil boom.
A meeting of the 23-nation alliance is scheduled to take place at OPEC’s headquarters in Vienna on Wednesday, according to a statement released by the OPEC secretariat on Saturday.
A monthly meeting has been held online and it was not expected that the group would be able to arrange an in-person meeting until at least the end of the year if not later.

A number of banks, including JPMorgan Chase & Co., have suggested that OPEC+ may need to cut output by at least 500,000 barrels a day in order to stabilize prices.

It has been suggested that the group may opt for a cut twice as large as that proposed by Helima Croft, chief commodities strategist at RBC Capital Markets LLC.

“I suspect that they might not want to go to the expense of going in person for a minor move,” Croft explained.

What countries are a part of OPEC?

Currently, the Organization comprises 15 Member Countries – namely Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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