Further squeezing already-tight supplies will be a slap in the face for consumers.Senior Analyst, Stephen Brennock, PVM Oil Associates in London, on OPEC’s decision to cut oil production – a move that will likely increase prices.
Why It Matters: OPEC+, a group of major oil producing countries like Saudi Arabia and Russia, meet to discuss the oil markets. When they decide to cut oil production, it can raise prices.
Why Did They Do It: The price of oil has dropped in recent months due to a slowing economy. Purposefully cutting supplies *may* raise prices for oil producers that sell the oil (making them more money) but in turn, it *may* also raise prices for consumers. We write *may* because supply is just one factor in prices.
by Jenna Lee,