Oil prices edged up after the Organization of the Petroleum Exporting Countries and its allies, including Russia, agreed an output reduction of 2 million barrels per day from November — its deepest cuts since the 2020 COVID-19 pandemic.
The decision was made during OPEC+'s Joint Ministerial Monitoring Committee in-person meeting in Vienna, and could prompt a recovery in oil prices that have dropped to about $90 from $120 three months ago on fears of a global economic recession, rising US interest rates and a stronger dollar.
Sources told Reuters it was unclear if cuts could include additional voluntary reductions by members such as Saudi Arabia, or if they could include existing under-production by the group.
OPEC+ fell about 3.6 million bpd short of its output target in August.
After the decision was revealed, oil prices rose, with Brent crude up 0.38 percent to $92.15 a barrel at 04.30 p.m Saudi time, while US West Texas Intermediate went up 0.29 percent to $86.77 per barrel.
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