OPEC+ cuts output for the first time in a year

OPEC+ will decrease production by 100,000 b/d next month, restoring supplies to August levels, according to the group statement.

PHOTO: OPEC+ agrees to cut output by 0.1 mn b/d for October. Getty Images

Front-month ICE Brent has rallied to $96.32/bbl at 13.00 GMT, from day's lows of $93.02/bbl.

OPEC and its allies agreed to cut October production targets by 100,000 b/d, a first in a year.

Through this decision the group intends to stabilise volatility in Brent values, that have plunged to $95/bbl from nearly $120/bbl in June on the backdrop of faltering global economy.

OPEC+ noted "the adverse impact of volatility and a decline in liquidity” on the current oil markets while cutting the output.

The next OPEC+ meeting is scheduled on 5 October.

By Konica Bhatt

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