Crude futures rallied Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its oil-producing allies, OPEC+, agreed to trim their production levels amid growing global recession fears.
The cartel plans to reduce output targets by approximately 100,000 barrels per day (bpd) beginning in October.
Officials purported that it was necessary to stabilize market conditions and facilitate “efficient function” amid the “adverse impact of volatility and the decline in liquidity on the current oil market.” OPEC noted that uncertainty would force “continuous assessment of market conditions,” and a meeting could be called at any time.
The next meeting is officially scheduled for Oct. 5….