OPEC, Announces Massive, Oil Production Cut.<br />On October 5, OPEC+ announced that it will <br />cut oil production by 2 million barrels per day (BPD), <br />the largest cut since the beginning of the COVID pandemic.<br />CNN reports the move threatens to raise <br />the price of gasoline just weeks before <br />crucial midterm elections in the United States.<br />The reduction equals <br />approximately 2% <br />of global oil demand.<br />Brent crude oil rose 1.5% to <br />over $93 a barrel following <br />the announcement.<br />The news also sent the price <br />of U.S. oil up 1.7% to reach $88.<br />CNN reports that the production cuts <br />will take effect in November prior to <br />another OPEC+ meeting in December.<br />According to OPEC, the drastic reduction was made , “in light of the uncertainty that surrounds <br />the global economic and oil market outlooks.”.<br />OPEC controls over 40% of global oil production. .<br />CNN points out that the impact of the cut <br />may be limited, as OPEC has already been <br />struggling to meet previous production targets.<br />An announced cut of any volume is <br />unlikely to be fully implemented by all <br />countries, as the group already lags 3 million <br />BPD behind its stated production ceiling, Jorge Leon, Rystad Energy analyst, via CNN
