OPEC Oil

To regain control of oil prices that have fallen 33% since mid-June, yesterday OPEC+ announced a 2 million bbl/day production cut. However, OPEC+ is currently underproducing by several million bbl/day. Thus, the cut will probably reduce actual production by about 800,000 bbl/day. In response, President Biden will release 10 million more barrels from the Strategic Petroleum Reserve, which will have next to no impact on prices. It’s all just symbolic.