Subscribe Login
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
    • Home
    • News
      • Latest News
      • Cartoon
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • International
      • #
    • Business
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
    • Home
    • News
      • Latest News
      • Cartoon
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • International
      • #
    • Business
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup 2022
      • Olympics
      • #
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obituaries
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
  • Home
  • News
  • Latest
  • Business
  • Cartoon
  • Games
  • Food Awards
  • Health
  • Entertainment
    • Bookends
  • Regional
  • Sports
    • Sports
    • World Cup
    • World Champs
    • Olympics
  • All Woman
  • Career & Education
  • Environment
  • Webinars
  • More
    • Football
    • Letters
    • Advertorial
    • Columns
    • Editorial
    • Supplements
  • Epaper
  • Classifieds
  • Design Week
OPEC+ makes big oil cut to boost prices; pump costs may rise
OPEC+ alliance of oil-exporting countries decided Wednesday to sharply cut production to support sagging oil prices.
Business
October 5, 2022

OPEC+ makes big oil cut to boost prices; pump costs may rise

FRANKFURT, Germany (AP) — The OPEC+ alliance of oil-exporting countries decided Wednesday to sharply cut production to support sagging oil prices, a move that could deal the struggling global economy another blow and raise politically sensitive pump prices for US drivers just ahead of key national elections.

Energy ministers cut production by a larger-than-expected 2 million barrels per day starting in November after gathering for their first face-to-face meeting at the Vienna headquarters of the OPEC oil cartel since the start of the novel coronavirus pandemic.

The group said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.” Saudi Energy Minister Abdulaziz bin Salman stressed the group’s stated role as a guardian of stable energy markets.

“We are here to stay as a moderating force, to bring about stability,” he told reporters.

Oil is trading well below its summer peaks because of fears that major global economies such as the US or Europe will sink into recession due to high inflation, rising interest rates and energy uncertainty over Russia’s war in Ukraine. The OPEC+ decision could help member Russia weather a looming European ban on most of Moscow’s oil, but its impact will have some limitations because countries in the alliance already can’t meet their quotas.

US President Joe Biden considered the OPEC+ decision “short-sighted while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” White House press secretary Karine Jean-Pierre told reporters aboard Air Force One.

“It’s clear that OPEC+ is aligning with Russia with today’s announcement,” she said.

Bin Salman rejected questions referencing the reaction in Washington or implying that OPEC was assisting Russia, saying the discussion was in a non-political “silo” where the focus was prudent management of oil markets.

Following a token trim last month, Wednesday’s decision is an abrupt turnaround from months of restoring deep cuts made during the depths of the pandemic. As demand rebounded, global energy prices have swung wildly since Russia invaded Ukraine, helping fuel inflation that is squeezing economies worldwide.

Part of the OPEC+ cut is “on paper” because members already can’t supply enough oil to hit their allotments, said Gary Peach, oil markets analyst at energy information firm Energy Intelligence. “Only about half of that is real barrels,” he said.

A cut with oil near $90, which is “a comfortable price for all producers,” might not sit well with customers, but the oil ministers are “looking into the tunnel of recession ” that could lower demand in coming months, Peach said. “They decided to pre-empt that.”

The recent fall in oil prices has been a boon to US drivers, who saw lower gasoline prices at the pump before costs recently started ticking up, and for Biden as his Democratic Party gears up for congressional elections next month.

Biden has tried to receive credit for gasoline prices falling from their average June peak of $5.02 — with administration officials highlighting a late March announcement that a million barrels a day would be released from the strategic reserve for six months. High inflation is a fundamental drag on Biden’s approval and has dampened Democrats’ chances in the midterm elections.

Oil supply could face further cutbacks in coming months when a European ban on most Russian imports takes effect in December. A separate move by the US and other members of the Group of Seven wealthy democracies to impose a price cap on Russian oil could reduce supply if Russia retaliates by refusing to ship to countries and companies that observe the cap.

The EU agreed Wednesday on new sanctions that are expected to include a price cap on Russian oil, meant to starve Putin’s country of money for its war machine. It comes amid an energy crisis created by Russian reductions in natural gas supplies to Europe, whose leaders accuse Moscow of retaliation for their support for Ukraine and imposing of sanctions.

Russia “will need to find new buyers for its oil when the EU embargo comes into force in early December and will presumably have to make further price concessions to do so,” analysts at Commerzbank said. “Higher prices beforehand — boosted by production cuts elsewhere — would therefore doubtless be very welcome.”

International benchmark Brent has sagged as low as $84 in recent days after spending most of the summer months over $100 per barrel. US crude rose to $87.64, and international benchmark Brent went up to $93.21 after the decision.

{"website":"website"}{"jamaica-observer":"Jamaica Observer"}
img img
0 Comments · Make a comment

ALSO ON JAMAICA OBSERVER

Rivaldo Marshall takes third in 800m in final college race
Latest News, Sports
Rivaldo Marshall takes third in 800m in final college race
June 13, 2025
KINGSTON, Jamaica — Rivaldo Marshall of the University of Arkansas ended his college career with a gutsy third-place finish after clocking 1:46.71 sec...
{"jamaica-observer":"Jamaica Observer"}
Marines deploy in LA ahead of mass anti-Trump protests
International News, Latest News
Marines deploy in LA ahead of mass anti-Trump protests
June 13, 2025
Los Angeles, United States (AFP)-Armed Marines arrived on the streets of Los Angeles Friday, part of a large deployment of troops ordered by Donald Tr...
{"jamaica-observer":"Jamaica Observer"}
Convicted murderer put to death in fourth US execution this week
International News, Latest News
Convicted murderer put to death in fourth US execution this week
June 13, 2025
Washington, United States (AFP)-A South Carolina man convicted of a 2005 double murder was put to death by lethal injection on Friday, the fourth exec...
{"jamaica-observer":"Jamaica Observer"}
Community rallies to support families left homeless by Barbican Road fire
Latest News, News
Community rallies to support families left homeless by Barbican Road fire
June 13, 2025
KINGSTON, Jamaica—Several individuals and organisations have come together to offer hope, support, and real solutions after a devastating fire destroy...
{"jamaica-observer":"Jamaica Observer"}
Ralford Mullings breaks 33-year-old NCAA discus throw record
Latest News, Sports
Ralford Mullings breaks 33-year-old NCAA discus throw record
June 13, 2025
KINGSTON, Jamaica—Olympian Ralford Mullings of the University of Oklahoma threw a meet record 69.31m to win the men’s discus throw at the NCAA Divisio...
{"jamaica-observer":"Jamaica Observer"}
Arise Sir David! Football legend Beckham knighted
International News, Latest News
Arise Sir David! Football legend Beckham knighted
June 13, 2025
London, United Kingdom (AFP)-Former England football captain and global fashion icon David Beckham was knighted on Friday for his services to sport an...
{"jamaica-observer":"Jamaica Observer"}
TMC to repair leaking roof at Falmouth market
Latest News, News
TMC to repair leaking roof at Falmouth market
June 13, 2025
TRELAWNY, Jamaica —The Trelawny Municipal Corporation (TMC) has announced plans to carry out urgent repairs to a leaking roof at the Falmouth market, ...
{"jamaica-observer":"Jamaica Observer"}
Iran fires back at Israel after onslaught targets nuclear facilities
International News, Latest News
Iran fires back at Israel after onslaught targets nuclear facilities
June 13, 2025
TEHRAN, Iran (AFP) -- Iran fired a barrage of ballistic missiles at Israel in a counter-strike Friday, after an unprecedented onslaught hammered the I...
{"jamaica-observer":"Jamaica Observer"}
❮ ❯

Polls

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy

Recent Posts

Archives

Facebook
Twitter
Instagram
Tweets

Polls

Recent Posts

Archives

Logo Jamaica Observer
Breaking news from the premier Jamaican newspaper, the Jamaica Observer. Follow Jamaican news online for free and stay informed on what's happening in the Caribbean
Featured Tags
  • Editorial
  • Columns
  • Health
  • Auto
  • Business
  • Letters
  • Page2
  • Football
Categories
  • Business
  • Politics
  • Entertainment
  • Page2
  • Business
  • Politics
  • Entertainment
  • Page2
Ads
img
Jamaica Observer, © All Rights Reserved
  • Home
  • Contact Us
  • RSS Feeds
  • Feedback
  • Privacy Policy
  • Editorial Code of Conduct