- October 14, 2022
- Posted by: Stratford Team
- Category: Economy
The world’s major oil producers have decided to slash the amount of oil they deliver to the global economy, driving up prices and souring the relationship between the US and Saudi Arabia.
The Organisation of the Petroleum Exporting Countries Plus (OPEC+), which includes Russia and Saudi Arabia, announced last week it would cut production by 2 million barrels a day, which will help prop up oil prices that are allowing Russian President Vladimir Putin to keep paying for his eight-month invasion of Ukraine.
The cuts equal 2 per cent of the global supply and come as the US and Europe try to cap the oil money flowing into Moscow.
Here’s what the OPEC+ decision could mean for the economy and the relationship between the United States and Saudi Arabia.
What is OPEC+?
OPEC+ is a group of oil exporters consisting of 23 member countries which meet regularly to decide how much crude oil to sell on the world market.
The OPEC cartel gained 10…
