The Organization of the Petroleum Exporting Countries and its partners have decided to reduce output by 101,000 barrels per day in October as a result of the recent steep decrease in crude prices.
To address production levels for October, the cartel held its ministerial meeting with its allies via videoconference. To control price volatility and stabilise the oil market, OPEC and its allies have been convening every month.
The Ministerial Meeting of OPEC and Non-OPEC recognised the negative effects of volatility and the loss in liquidity on the present oil market and the need to support the market's stability and effective operation, "It read.
"The meeting observed that increasing volatility and increased uncertainties necessitate ongoing market evaluation and a willingness to make quick adjustments to production in various forms, "OPEC stated in a public statement. "Within the existing procedures of the Declaration of Cooperation," the announcement stated, "OPEC and allies have the commitment, the flexibility, and the means to deal with these difficulties and provide guidance to the market."
Concerns about rising interest rates, the global recession, the increase in Covid-19 cases in China, and potential lockdowns there have caused crude oil prices to decline from multi-year high levels in recent months.