OPEC and other oil-producing countries, including Russia, reduced their supplies to the global economy by 100,000 barrels per day, highlighting their dissatisfaction with low crude prices caused by recession fears.

Concerns about future demand have helped bring prices down from June heights of more above $120 per barrel, reducing the windfall for OPEC+ countries’ government budgets while benefiting drivers in the United States by lowering pump prices.

In a statement, the energy ministers stated that the September rise was only for that month and that the group might meet again at any time to discuss market developments.

Other factors that could affect the price of oil are lurking. For example, the Group of Seven major democracies intends to impose a price restriction on Russian oil imports, and what effect this may have on the market. The cap’s price has yet to be determined.

Energy prices have fluctuated in recent months, with fears of a recession pushing them lower and worry of a loss of Russian oil due to sanctions over its invasion of Ukraine pushing them higher.

Credits: Elko Daily

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