Recently, through the 32nd OPEC Meeting on September 5, 2022, OPEC officially cut crude oil production by 100,000 barrels per day. Of course this surprised many parties, especially Non-OPEC countries.
It is known that European and even Asian countries are experiencing an increase in gasoline prices, which certainly results in inflation in each country. So what is OPEC’s real goal in the midst of global inflation?
OPEC stated that production cuts are in line with strengthening revenues and maintaining stocks of OPEC countries, so that the production that has been carried out is on target. In addition, OPEC said that crude oil prices, which are currently unstable, will be regulated through production cuts.
OPEC took the first step amid the uncertainty of the global situation, one of the steps taken was to conclude a nuclear agreement or deal between the US and Iran. Thus, many countries that are not oil producers have to find other ways with high oil prices, and domestic energy needs must be maintained.