PAIN AT THE PUMP

Oil Producing Countries Announce Surprise Cut in Output

Oil prices increased after the announcement Monday.

Global energy ministers announced Monday that the Organization of the Petroleum Exporting Countries and their allies (OPEC+) would cut output by a small amount from October. The move comes as oil prices have fluctuated in the U.S. and globally for months; prices surged in June when gasoline in the U.S. reached $5 per gallon. OPEC+ marginally upped production by 100,000 barrels per day in September (a fraction of their total 43.8 million barrels per day) after the U.S. appealed to major oil-producing companies to boost their output to lower surging gas prices. But on Monday they said they would be reversing that minor increase and returning to August production levels because the increase was “intended only for the month of September.” Oil prices increased after the announcement. Russian exports and the U.S.-Iran relationship could affect oil prices moving forward.