Sept. 7 (UPI) -- A coalition of major oil-producing nations said Sunday it will slightly scale back its voluntary production cuts starting in October, adding a small amount of crude back into global markets while keeping most of its reductions in place.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, which have made extra voluntary cuts since 2023, met virtually Sunday to review global market conditions and agreed to reduce those curbs by about 137,000 barrels a day, the Organization of the Petroleum Exporting Countries announced in a news release.
Decisions by OPEC+, which includes nonmember producers like Russia, matter for everyday Americans because the group controls more than 40% of global oil output and helps set the price of crude oil, the main ingredient in gasoline. Even small shifts in production can ripple through global markets, affecting what drivers pay at the pump, the costs of shipping and air travel, and broader inflation that touches everything from groceries to utilities.
If the scale-back of cuts succeeds in balancing supply with demand, oil prices may stabilize or even ease slightly, giving consumers modest relief at the pump and helping to cool inflation pressures. But if markets weaken or inventories climb unexpectedly, OPEC+ could reverse course, pausing or restoring the cuts, which could tighten supply and push prices back up.
