The OPEC+ alliance of oil-exporting countries decided Wednesday to sharply cut production to support sagging oil prices.
Energy ministers cut production by 2 million barrels per day starting in November after gathering for their first face-to-face meeting at the Vienna headquarters of the OPEC oil cartel since the start of the COVID-19 pandemic.
The group said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.” Saudi Energy Minister Prince Abdulaziz bin Salman stressed the cartel’s stated role as a guardian of stable energy markets.
“We are here to stay as a moderating force, to bring about stability,” he told reporters.
Oil is trading well below its summer peaks because of fears that major global economies such as the US or Europe will sink into recession due to high inflation, rising interest rates and uncertainty over the war in Ukraine.
“We are going through a period of diverse uncertainties, which could come our way, it’s a brewing cloud,” Prince Abdulaziz said, adding that OPEC+ sought to remain “ahead of the curve.”