Oil prices continued to face a downward trend on Wednesday, influenced by global economic instability concerns and preceding a significant meeting scheduled for Sunday, with contradictory indications about production from
BP and Shell leap after production cut by Opec+
BP PLC (LSE:BP.) and Shell PLC (LSE:SHEL, NYSE:SHEL) led the FTSE 100 risers after the announcement of a surprise cut in oil production by OPEC+ members.
Fresh inflation fears were triggered as Saudi production cuts caused a surge in oil prices.
Unexpected cuts to crude output by oil producers have caused oil prices to soar, raising fresh inflation concerns in global markets.
Surprise oil output cuts announced by OPEC+
On Sunday, OPEC+ oil producers, including Saudi Arabia, declared an unexpected reduction in their production by approximately 1.16 million barrels per day.
Oil prices hit 10-month low as OPEC+ look to boost production
Oil prices fell to their lowest level since January 1, when oil prices plunged after Wall Street Journal reported that Saudi Arabia, along with other OPEC oil producers, were discussing
The United States will likely stop arms sales to Saudi Arabia
According to Senator Chris Coons (a close ally to President Joe Biden), the United States will likely stop arms sales to Saudi Arabia as a result of the OPEC+ decision.
Saudi and Russian-led oil cuts could spark global recession according to the IEA
The International Energy Agency warned that a decision by Opec, the Saudi Arabia-led producer cartel, to reduce oil production could lead to a global recession.
President Joe Biden “there will be consequences” for U.S. relations with Saudi Arabia after OPEC+ cut oil production
After OPEC+ last week announced that it would reduce its oil production target, President Joe Biden said Tuesday that “there will be consequences” for U.S.-Saudi relations.
OPEC+ will consider a cut in oil production of more than 1 million barrels per day
OPEC+ will be considering a reduction in oil production of more than a million barrels per day (bpd), OPEC sources stated on Sunday.
The week ended with oil prices at multi-month lows due to recession fears
On Friday, oil prices closed higher, recovering some of the losses from this week’s weak U.S. job growth data. However, they closed the week at their lowest level since February
OPEC+ effectively snubs US president Joe Biden’s push to get more oil pumped.
Analysts believe that OPEC+ will increase oil production by a small 100,000 barrels per hour. This is in direct insult to President Joe Biden, who travelled to Saudi Arabia last