OPEC+ could decide on a major drop in oil production

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Oil prices jumped again on the eve of an OPEC+ meeting in Vienna. The organization of crude exporting countries could decide this Wednesday, October 5 on a very significant drop in supply on the market.

Members of OPEC+ and their ten allies, led by Russia, are physically meeting in the Austrian capital for the first time since March 2020 and the emergence of Covid-19. They are rumored to decide to cut production by one million barrels per day, which is 1% of global production.

► To read also: First for more than a year, OPEC reduces its oil production

The objective is to bring up the price of black gold, which has fallen in recent months due to fears of a drop in demand linked to the slowdown in the major economies of the planet.

Such a reduction would represent a setback for Western countries which are stepping up their efforts to stem inflation: soaring prices at the pump are seriously affecting consumers’ wallets.

A significant drop in production would therefore risk angering the United States, which, along with other Western countries, is instead calling for an increase in oil production to keep prices low.

The American President Joe Biden even visited Riyadh in July to convince Saudi Arabia, leader of OPEC+, to produce more.

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