# Why is OPEC+ cutting oil production and what’s next? | Explainer News | Al Jazeera

> OPEC+ agreed to cut output by two million barrels per day starting in November, the group's largest cut since 2020. The Saudi energy minister said the real cut would be about 1 to 1.1 million bpd. The decision came ahead of EU embargoes on Russian energy.

- Date: 2022-10-06 · published 2022-10-06T12:00:00.000Z
- Category: policy · region Global · magnitude high
- Page: https://feedsoft.ai/events/39328-why-is-opec-cutting-oil-production-and-what-s-next-explainer-news-al-jazeera
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

A cut of this size tightens global crude supply just before winter demand peaks, supporting energy and freight costs for feed buyers. Higher oil prices also raise fertilizer and transport expenses across the feed chain.

## Read by commodity

- WTI: bullish ▲
- BRENT: bullish ▲
- DIESEL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +5.4% | -0.0% |
| WTI | 2017-04-26 | [Is An Extension Of OPEC's Oil Production Cuts Really A Done Deal? \| Investing.com](https://feedsoft.ai/events/71417-is-an-extension-of-opec-s-oil-production-cuts-really-a-done-deal-investing-com.md) | -3.4% | +3.9% |
| WTI | 2020-07-01 | [Opec and allies extend oil production cuts to end of July](https://feedsoft.ai/events/52516-opec-and-allies-extend-oil-production-cuts-to-end-of-july.md) | +4.2% | +4.9% |
| WTI | 2018-12-07 | [OPEC and allies agree to cut oil production](https://feedsoft.ai/events/10629-opec-and-allies-agree-to-cut-oil-production.md) | +2.2% | -6.2% |
| WTI | 2018-12-07 | [Oil producers join forces and cut production again \| AP News](https://feedsoft.ai/events/10626-oil-producers-join-forces-and-cut-production-again-ap-news.md) | +2.2% | -6.2% |
| BRENT | 2023-04-03 | [Why did OPEC cut oil production? Key reasons explained](https://feedsoft.ai/events/36321-why-did-opec-cut-oil-production-key-reasons-explained.md) | +7.4% | +1.0% |
| BRENT | 2017-04-26 | [Is An Extension Of OPEC's Oil Production Cuts Really A Done Deal? \| Investing.com](https://feedsoft.ai/events/71417-is-an-extension-of-opec-s-oil-production-cuts-really-a-done-deal-investing-com.md) | -1.6% | +5.8% |
| BRENT | 2020-07-01 | [Opec and allies extend oil production cuts to end of July](https://feedsoft.ai/events/52516-opec-and-allies-extend-oil-production-cuts-to-end-of-july.md) | +4.3% | +4.3% |

## Sources

- aljazeera.com: https://www.aljazeera.com/news/2022/10/6/why-is-opec-cutting-global-oil-production

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.