The Organization of the Petroleum Exporting Countries (OPEC) and its allies announced on Monday a reduction in oil output by 100,000 barrels per day (bpd), which will comprise only around 0.1% of global demand, according to Reuters.
It is widely reported that Russia supports the planned cut in production. As oil supplies remain tight, sanctions imposed by Western countries threaten Russian oil exports. Russia has also threatened to stop its oil supply to countries that support the idea of a price cap on Russian energy commodities.
This slowdown in oil production could also be a bid to arrest volatility in oil prices with the benchmark Brent crude oil falling to around $87 from $120 a barrel back in June.