As oil prices fall, OPEC Plus opts against cutting production further


But the group says its contentious decision to cut production in
October is vindicated by dropping prices

As gas prices continue to fall, the coalition of oil-producing nations
led by Saudi Arabia and Russia on Sunday opted against trying to stop
the slide with cuts to the world's oil supply.

The decision to keep production steady came Sunday at a virtual
meeting of the Organization of the Petroleum Exporting Countries and
its partners, called OPEC Plus.

Sunday's move comes after the group unleashed a diplomatic firestorm
at its last meeting in October, when it agreed to cut output by 2
million barrels per day. The move drew a sharp rebuke from the White
House and a vow from President Biden to inflict "consequences" on
Saudi Arabia, the most powerful member of the organization.

But projections that the October cut would send gas prices soaring and
generate an infusion of new cash for Russia to bankroll its war on
Ukraine proved wrong. Only weeks after the consortium announced that
cut, oil prices began dropping. Gasoline now costs less than it has in
nine months, with consumers paying lower prices than they did just
before Russia launched its invasion.

On Sunday, the average price of a gallon of regular gas in the United
States was $3.41, according to AAA, down sharply from its high in June
over $5

https://www.washingtonpost.com/business/2022/12/04/opec-oil-gas-saudi-arabia/

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