OPEC Plus decides to reduce oil production by two million barrels per day

The Joint Ministerial Monitoring Committee of the OPEC Plus alliance agreed to reduce oil production by two million barrels per day.

Three sources in OPEC Plus told Reuters that the alliance's joint ministerial monitoring committee agreed to reduce oil production by two million barrels per day.

The agency quoted White House spokesman John Kirby as saying that the United States needs to be less dependent on OPEC Plus and foreign oil producers.

Sources told Reuters this week that the coalition, which includes Saudi Arabia and Russia, is working on cuts of more than one million barrels per day, while other sources said that cuts may approach two million barrels per day.

An informed source said that the United States is pressing the Organization of Petroleum Exporting Countries (OPEC) not to proceed with production cuts, saying that market fundamentals do not support the cut.

Sources stated that it is still not clear whether the cuts may include additional voluntary cuts by members such as Saudi Arabia, or whether they may include the actual production shortages in producing countries.

The production of OPEC Plus in August was below the target by about 3.6 million barrels per day.

"If oil prices rise on massive production cuts, it is likely to irritate the administration of US President Joe Biden ahead of the US midterm elections," Citi analysts said in a note.

They added: "There may be further political backlash from the United States, including an additional drawdown of strategic stockpiles."

Saudi Arabia and other members of OPEC Plus, which includes OPEC countries and non-OPEC producers, including Russia, say they seek to prevent volatility and not target a specific oil price.

Before the meeting, oil prices recorded a slight decline, on Wednesday, after achieving gains during the past days, with previous expectations that OPEC Plus producers would agree to a significant reduction in crude production despite the weak supply in the market.

Brent crude, the global benchmark, fell 23 cents, or 0.3%, to $91.57 a barrel at 08:39 GMT. US West Texas Intermediate crude fell 32 cents, or 0.4%, to $86.20 a barrel. They had recorded a significant increase in the past two days.

The West accuses Russia of using energy as a weapon and creating a crisis in Europe that may force it to ration gas and electricity this winter. In return, Moscow accuses the West of weaponizing the dollar and financial systems like Swift in response to Russia's sending of troops to Ukraine in February. The West accuses Moscow of attacking Ukraine, while Russia calls it a "special military operation".

One of the reasons Washington desires lower oil prices is that it seeks to deprive Moscow of the proceeds from the sale of oil.