Oct 8 (Lagos) - The decision by the OPEC+ oil cartel to cut crude oil production by 2 million barrels per day or 2% output has shocked the government in the United States. The US President had personally travelled to Saudi Arabia to request the kingdom to not cut production. The decision to cut production by 2 million barrels per day surprised most analysts as they were expected a cut of 500,000 barrels per day.
OPEC has said that the production cut was necessary to stabilize the price of crude oil which has fallen in recent months after a sharp rise over last year. Crude oil prices are above $93 a barrel in New York (WTI).
The US government predictably accused OPEC of siding the Russia and worried that this could boost Russia's revenues from crude oil sales. This also practically ends the US efforts to cap the selling price of Russia's crude oil. Some analysts in the US are now suggesting that the US start doing business with Venezuela and Iran to boost oil supply.
reporting for easykobo.com on Sunday, October 9 2022 from Lagos, Nigeria