The Organization of the Petroleum Exporting Countries (OPEC) and its oil-exporting allies will weigh significant cuts to oil production in order to deal with falling fuel prices, according to a new report.
According to the Wall Street Journal, the OPEC+ coalition may cut over 1 million barrels per day, in what would be the largest production reduction since the COVID-19 pandemic. The move would boost the price of oil and further strain Western consumers amid soaring inflation.
Among the OPEC+ allies is Russia, which has been targeted by an onslaught of international sanctions since its invasion of Ukraine earlier this year, contributing to skyrocketing energy prices in the U.S. and elsewhere.
The mission of OPEC — which includes Iran, Iraq, Saudi Arabia — is coordinating and stabilizing the global oil market.
But the possibility of an OPEC+ cut to oil production could further destabilize the global economy more broadly.
Treasury Secretary Janet Yellen last month cautioned that gas prices may rise again in the winter as some European countries move to further limit Russian profits from the sale of oil.
