OPEC+ Agrees Oil Output Cuts of 2 Mln Bpd

Prince Abdulaziz bin Salman (C), Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, attends a press conference of the 33rd Organization of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting at the OPEC headquarters in Vienna, Austria, 05 October 2022. (EPA)
Prince Abdulaziz bin Salman (C), Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, attends a press conference of the 33rd Organization of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting at the OPEC headquarters in Vienna, Austria, 05 October 2022. (EPA)
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OPEC+ Agrees Oil Output Cuts of 2 Mln Bpd

Prince Abdulaziz bin Salman (C), Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, attends a press conference of the 33rd Organization of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting at the OPEC headquarters in Vienna, Austria, 05 October 2022. (EPA)
Prince Abdulaziz bin Salman (C), Minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, attends a press conference of the 33rd Organization of Petroleum Exporting Countries (OPEC) and non-OPEC Ministerial Meeting at the OPEC headquarters in Vienna, Austria, 05 October 2022. (EPA)

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.”



Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
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Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo

US President-elect Donald Trump vowed on Monday to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs.

He said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.

In a series of posts to his Truth Social account, Trump vowed to hit some of the United States' largest trading partners with duties on all goods entering the country.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on ALL products coming into the United States,” he wrote, according to AFP.

He said the new tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”

The President ignored the US, Mexico and Canada three-decade-old free trade agreement, now called the USMCA.

In another post, Trump said he would also be slapping China with a 10% tariff, “above any additional Tariffs,” in response to what he said was its failure to tackle fentanyl smuggling.

“No one will win a trade war,” Liu Pengyu, a spokesman for China's embassy in the United States, told AFP by email, defending Beijing's efforts to curb fentanyl smuggling.

“China believes that China-US economic and trade cooperation is mutually beneficial in nature,” Liu added.

Canada said it was “essential” to US energy supplies, and insisted the relationship benefits American workers.

“We will of course continue to discuss these issues with the incoming administration,” said the statement from Deputy Prime Minister Chrystia Freeland.

Tariffs are a key part of Trump's economic agenda, with the Republican vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail.

Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.

But those in Trump's inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.