OPEC+ cuts production due to West decision on price ceiling, Borrell says

BRUSSELS, 7 Oct – PRIME. The head of EU diplomacy, Josep Borrell, believes that the decision of OPEC + to reduce production is connected with the decision of the West to impose a price ceiling on Russian oil.

OPEC+ has agreed to cut oil production by 2 million barrels per day from November, and will take production levels agreed upon for August as a baseline. OPEC+ explained its decision by uncertainties around the global economy and forecasts for the oil market. US President Joe Biden called the decision disappointing and short-sighted, and said the administration will consult with Congress on additional tools and opportunities to reduce OPEC’s energy price controls.

“OPEC’s decision to cut oil supplies is a clear response to our proposal to cap oil prices,” Borrell said ahead of an informal European summit in Prague.

According to him, today energy has become “the main geostrategic issue related to war and the balance of power in the world.”

“We intend to discuss this at the summit today,” he added.