Economic Affairs

Opec+ oil shock a wake-up call

The price jump sparked by its move to cut production underlines the need for more short-term investment in fossil fuels while pursuing the green agenda.

Opec+ on Oct 5 agreed to its deepest cuts to oil production since the 2020 Covid-19 pandemic. PHOTO: AFP
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On Oct 5, the oil cartel Opec+, led by its two largest producers Saudi Arabia and Russia, delivered a rude shock to the global energy market by announcing a higher-than-expected production cut of 2 million barrels a day, equivalent to around 2 per cent of global consumption.

In reality, the cut, which will run till December 2023, will be about half of that because a lot of the cartel's members are not meeting their full production quotas.

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