The OPEC Plus alliance agreed to the largest production cut since the Covid-19 pandemic, at a meeting in Vienna on Wednesday, limiting supplies in an already tight market despite pressure from the United States and other countries to pump more.

Reuters quoted a source that OPEC Plus agreed to reduce oil production by two million barrels per day.

In a press conference, Saudi Energy Minister Prince Abdulaziz bin Salman said, "What we are doing is very vital and important for other exporting countries that are not members of OPEC Plus. The proactive decisions taken by OPEC Plus have helped us maintain a sustainable oil market."

"We act and present our commitment to the entire global economy, and we will continue our commitment to improving the situation of production and consumers," Prince Abdulaziz added.

The Saudi minister also said, "We don't know how the Russian oil price ceiling will be imposed," according to Reuters.

Oil price recovery

And the OPEC Plus production cut may lead to a recovery in oil prices, which fell to about $90, after it was $120 three months ago, due to fears of a global economic recession, raising US interest rates and a rising dollar.

An informed source said that the United States is pressing the Organization of Petroleum Exporting Countries (OPEC) not to proceed with production cuts, and says that market fundamentals do not support the reduction.

Sources stated that it is still not clear whether the cuts may include additional voluntary cuts by members such as Saudi Arabia, or whether they may include the actual production shortages in producing countries.

OPEC Plus production in August was below the target by about 3.6 million barrels per day.

"If oil prices rise on massive production cuts, it is likely to irritate the Biden administration ahead of the US midterm elections," Citi analysts said in a note.

"There may be further political reactions from the United States, including additional drawdowns of strategic stocks," they added.

He also expected "JP Morgan", the largest bank in the United States that Washington will take countermeasures by releasing more quantities of stocks.

prevent fluctuations

Saudi Arabia and other members of OPEC Plus, which includes OPEC countries and non-OPEC producers including Russia, say they are seeking to prevent volatility and not target a specific oil price.

Brent crude, the global standard, rose today, Wednesday, towards $ 93 a barrel, after rising yesterday.

The West accuses Russia of using energy as a weapon, and of creating a crisis in Europe that may force it to ration gas and electricity this winter.

In contrast, Moscow accuses the West of using the dollar and financial systems - such as Swift - as a weapon in response to Russia's sending of troops to Ukraine last February.