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Oil price is expected to rise as OPEC cuts production capacity
#1 · April 3, 2023, 6:21 AM
Oil price is expected to rise as OPEC cuts production capacity, LinkedIn News explains.
Oil prices jumped by the most in nearly a year after the Organization of the Petroleum Exporting Countries (OPEC+) and Saudi Arabia announced late Sunday that they are cutting their production by more than 1 million barrels a day. The reduction will take effect in May and brings the total volume of production cuts to 3.66 million barrels per day, or roughly 3.8% of global demand, Reuters reports. The U.S. had said lower prices were needed to support economic growth. The news came a day before a virtual meeting for OPEC+'s ministerial panel, which includes Russia and Saudi Arabia.