Saudi Arabia plans, in agreement with Russia, to announce significant reductions in oil production, during the upcoming OPEC + meeting on Wednesday, October 5, 2022.
This move is considered a challenge to the US, which asks oil producers to raise their quantities to compensate for the shortfall in supply imposed on Russia, according to What the US Financial Times said.
According to the newspaper, Saudi Arabia and Russia are pressing for cuts of between one and two million barrels per day or more, and analysts said that this step is likely to lead to US countermeasures.
A source in the Organization of the Petroleum Exporting Countries also confirmed to Reuters that the OPEC + alliance is studying oil production cuts of up to two million barrels per day.
In the first comment on this news, a well-informed source told Reuters that the US is calling on the OPEC + countries not to move forward with possible large cuts in oil production.
The source said that Washington is telling OPEC + countries that the economic fundamentals do not support production cuts.