OPEC making biggest oil production cut since beginning of pandemic

OPEC
OPEC(Source: CNN, CNN Business)
Published: Oct. 5, 2022 at 12:51 PM CDT
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(AP & Valley News Live) -- In a move that could potentially send gas and oil prices back up in the U.S., OPEC says it will cut oil production by 2 million barrels per day.

Meeting in Vienna, Austria, the organization of the petroleum exporting countries and its allies, together called OPEC+ say the production cut set to start in November was based on uncertainty surrounding the global economic and oil market outlooks.

Oil prices have fallen to around $80 a barrel from more than $120 in early June.

The move is a major reversal from OPEC’s efforts to restore deep output cuts made during the COVID-19 pandemic.

North Dakota’s U.S. Representative Kelly Armstrong said in a tweet:

Kelly Armstrong tweet
Kelly Armstrong tweet(KVLY)

It also comes despite calls from the Biden administration for the group to pump more to lower fuel prices.

In a statement, the Biden administration said it was disappointed in OPEC+’S decision, calling it “shortsighted” in light of global energy prices already lifted higher by Russia’s invasion of Ukraine.

OPEC+ will hold its next meeting on December 4th.