No respite from inflation: OPEC+ decision to cut oil supplies will tighten the market

On Wednesday, the Organisation of Petroleum Exporting Countries (OPEC) and its allies announced their decision to slash crude oil output by two million barrels per day ahead of the peak winter months. The decision will come into effect from November this year. The deep production cuts, equivalent to around 2 per cent of global supply, will only tighten the global oil market. Crude oil prices, which had fallen off the highs seen in June, and hit a recent low of $82 barrel last week, rose above $93 per barrel on Wednesday following the news.