News Analysis
The latest production cut announced by the OPEC+ oil cartel brings to light vulnerabilities but also opportunities in North American energy policy. Canada faces higher inflation as its dollar remains weak despite the rise in the price of oil, while the United States continues to draw on emergency resources though this is expected to wind down.
The cartel, formed by the 14-member Organization of the Petroleum Exporting Countries (OPEC) and 10 other oil-exporting countries, agreed on Oct. 5 to reduce collective output by 2 million barrels a day starting in November—the biggest production cut since 2020. The production cut was widely expected and the aim is to keep prices for Brent crude—the global oil benchmark—above US$90 per barrel to ensure stability for OPEC+ economies….