Organization of Petroleum Exporting Countries and OPEC+, a consultative body for major oil-producing countries, have decided to cut production by 2 million barrels per day next month.
The US, which repeatedly requested an increase in production to keep up with the soaring oil price, strongly criticized the decision as being short-sighted.
Correspondent Yunsu Kim from Washington.
Organization of Petroleum Exporting Countries and OPEC+, a consultative body for major oil producing countries including Russia, held a monthly ministerial meeting and agreed to cut crude oil production by 2 million barrels per day next month.
Following the production cut of 100,000 barrels a day in October, the production cut has increased 20 times, the largest cut since the COVID-19 pandemic.
OPEC+ explained that it has increased production cuts due to growing market uncertainties such as concerns about an economic slowdown.
The White House, which repeatedly requested an increase in oil prices to stabilize oil prices, strongly criticized it as a short-sighted decision.
[Karin Jean-Pierre / White House Press Secretary: OPEC+'s decision to cut oil production as the global economy responds to the negative effects of Putin's invasion of Ukraine is a short-sighted measure.
] He criticized that it became clear that there was.
The White House has announced that it will release an additional 10 million barrels of oil from its strategic stockpile next month to prevent the stabilizing oil price from rising again.
They asked refiners to lower prices, and they also agreed to discuss measures to reduce the influence of Congress and OPEC.
Analysts predicted that the decision to cut production could boost the average price of gasoline in the US, which is around $3.8 a gallon, by up to 30 cents.
There is also an analysis that if oil prices rise again a month before the midterm elections, it will be quite a bad news for the Democratic Party.