Price of Oil Soars , on Fears of Massive , OPEC Production Cut.<br />On October 3, oil prices skyrocketed to $3 a barrel <br />as OPEC+ announced a potential reduction of<br />output by over one million barrels per day (bpd).<br />Al Jazeera reports that the OPEC+ said the move would be meant to buttress prices with the biggest cut since the beginning of the COVID pandemic.<br />Reuters reported that sources within the Organization <br />of the Petroleum Exporting Countries (OPEC+) say the <br />massive cut could be decided upon in an October 5 meeting.<br />Another source reportedly said that figure <br />excludes additional voluntary cuts <br />made by individual OPEC members.<br />Dennis Kissler, senior vice president of trading <br />at BOK Financial, said most traders were <br />expecting a cut of about 50,000 bpd.<br />Last month, the group reduced <br />output by 100,000 bpd. .<br />After a year of tolerating extremely <br />high prices, missed targets and severely <br />tight markets, the [OPEC+] alliance <br />seemingly has no hesitation when it comes <br />to acting rapidly to support prices amid <br />a deterioration in the economic outlook, Craig Erlam, Oanda market analyst, via Al Jazeera.<br />After a year of tolerating extremely <br />high prices, missed targets and severely <br />tight markets, the [OPEC+] alliance <br />seemingly has no hesitation when it comes <br />to acting rapidly to support prices amid <br />a deterioration in the economic outlook, Craig Erlam, Oanda market analyst, via Al Jazeera.<br />According to Al Jazeera, two sources within <br />OPEC+ say the group missed production <br />targets by almost three million bpd in July.<br />Those sources cited sanctions on some OPEC+ <br />members and low investment by others as <br />causes for the group's inability to raise output.<br />According to consultancy FGE, while prices could strengthen in the short term, long term concerns regarding a potential global recession remain.<br />According to consultancy FGE, while prices could strengthen in the short term, long term concerns regarding a potential global recession remain
