Oil price surges after surprise Opec+ production cut

Western government are worried the decision by Opec+ to prop up prices could harm efforts to control inflation.

Move by world’s largest producers likely to unsettle western nations grappling with inflation

The oil price surged to near $86 a barrel after the world’s largest producers announced a surprise cut in production , a move that is likely to prompt fresh tensions with the US as western governments try to get a grip on inflation.

The Opec+ group of countries, which includes major producers Saudi Arabia, Iraq and Russia, said they would slash production by around 1m barrels a day, accounting for about 3.7% of global demand.

At the same time Russia announced plans to extend its existing production cut of 500,000 barrels a day until the end of the year.

Western governments are worried that the decision by Opec+ to prop up prices could harm efforts to curb inflation that were originally exacerbated by geopolitical tensions following Russia’s invasion of Ukraine.

Read the full article on The Guardian website:

https://www.theguardian.com/business/2023/apr/03/oil-price-surges-after-surprise-opec-production-cut