Opec+ agreed on Monday to cut crude supply in a bid to prop up oil prices, defying calls from western governments battling to curb inflation in the face of a mounting global energy crisis.
The producer group will cut 100,000 barrels a day from supply from October, reversing an earlier increase of the same amount agreed last month following a visit to Jeddah by US President Joe Biden.
While traders said the amounts were relatively tiny in the global oil market, where demand is about 100mn b/d, the signal to Washington and the energy sector was more powerful: Opec and its allies, including Russia, will move to defend oil prices.
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