Oil Production Exporting Countries including non oil cartel members known as OPEC+ has agreed at a meeting in Geneva, Switzerland to cut oil output by 2 million barrels per day.
However the White House is kicking against any major cut in production and President Joe Biden says cut will be a “total disaster” and unnecessary but right now it seems a matter out of control of the White House.
Russia a member of the OPEC+ as a non cartel member and favours production cut to get higher prices for its oil export but Western European countries are set to put a price cap on its oil export.
However, petroleum analysts said the actual cut may come down to one million barrels per day. The current price for Brent crude is US$93.16 while the WTI crude is US$87.77.
The agreed cut is the deepest since the start of Covid-19 pandemic and it is expected to push demand higher than higher