OPEC+ Agrees to Cut Oil Production by Two Million Barrels Per Day

The organization, which includes Russia, Saudi Arabia and other oil producers, previously noted that it seeks to prevent volatility on the market.

Countries of the OPEC+ agreed to cut their oil output by two million barrels per day on Wednesday, an official communique read. At the same time, the OPEC+ deal was extended until December 31, 2023.

Previously, a source told Sputnik that all members voted in favor of the reduction after discussing oil market reports.

The cuts are expected to enter into force this November.

A pump jack is silhouetted against the setting sun in Oklahoma City on March 22, 2012.

© AP Photo / Sue Ogrocki

Previously, reports said that the cut was offered by the ministerial monitoring committee.

The US reacted to the decision, with the White House saying that President Joe Biden is "disappointed". It also pledged to liberate another ten million barrels from the Strategic Petroleum Reserve to the market next month.

The price of Brent crude soared above $125 a barrel in February after Russia launched its special military operation in Ukraine. The sanctions imposed against Moscow by the US, the EU, and Britain, resulted in skyrocketing gas and energy prices, however, over the following months, oil prices dropped well below $90.

At the same time, G7 leaders proposed the imposition of a price cap on Russian oil - a plan which Moscow lambasted as "absurd", warning that the move will destabilize the oil market.

In response, Russia also significantly boosted its exports to countries that ignored western sanctions: for instance, Moscow became the second-biggest oil supplier to India, closely following Saudi Arabia.