Explained | What is OPEC and why did it slash oil output?
Saudi Arabia, Russia and many other top oil producers agreed on Wednesday to massively cut down production to boost crude prices—a move denounced by the United States as a concession to Moscow that will further hurt the global economy.
The 13-nation OPEC cartel, headed by Riyadh and 10 of its allies led by Moscow, agreed at a meeting in Vienna to reduce output by two million barrels per day (bpd) starting in November, the group said in a statement.
It is the biggest cut since the height of the Covid-19 pandemic in 2020, raising fears that it will turbocharge oil prices at a time when countries are already facing soaring energy-fuelled inflation.
