OPEC Plus Considering Major Production Cut to Prop Up Oil Prices
OPEC Plus has taken action to support oil prices. In 2016, the group agreed to a historic deal to reduce production in order to address an oversupply issue.
OPEC Plus, the oil producers' group, is considering announcing a major cut in production when it meets on Wednesday, according to a person familiar with the thinking of Saudi Arabia, the group's de facto leader. Such a move would be a blow to the Biden administration, which has lobbied the Saudis to increase output.
The potential production cut would come as a response to falling oil prices, which have been caused by oversupply and weak demand. Analysts say that a significant reduction in output is necessary in order to prop up prices and prevent further decline.
This is not the first time that OPEC Plus has taken action to support oil prices. In 2016, the group agreed to a historic deal to reduce production in order to address an oversupply issue. The move was successful in boosting prices, and analysts believe that a similar cut could be effective once again.
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The final decision on production levels will be made at the OPEC Plus meeting on Wednesday. However, it is clear that the group is considering taking action to support oil prices. This would be a positive development for the global economy, as higher oil prices can lead to inflation and other economic problems.
