World: Oil: The OPEC reduces its daily quotas by two million barrels and raises fears of an increase in prices

Stocks and oil drop as dollar gains on recession, Ukraine fears

  Stocks and oil drop as dollar gains on recession, Ukraine fears Equities and crude prices fell, while the dollar held at multi-year highs Wednesday as recession fears mount, while traders are also growing increasingly concerned about tensions with Russia after it declared victory in controversial Ukraine annexation polls. Sentiment was also rattled by worries about developments in Ukraine, after Kremlin-installed authorities in four regions under Russian control claimed victory in annexation votes, with Moscow warning it could use nuclear weapons to defend the territories.Ukraine and its allies have denounced the so-called referendums as a sham, saying the West would never recognise the results of the ballots.

The organization had no longer operated such important cuts since 2020 and the Cavid-19 pandemic.

  Pétrole : l'Opep réduit de deux millions de barils ses quotas quotidiens et fait craindre une hausse des prix © supplied by Franceinfo

The member states of the Organization of oil exporting countries (OPEC), gathered Wednesday October 5 in Vienna (Austria), decided of a draconian cup of their production quotas , in order to to support prices affected by fears of recession. The thirteen OPEC members, led by Saudi Arabia, and their ten partners, led by Russia, agreed with a drop in "two million" barrels per day for the month of November, announced the 'Alliance in a press release.

"This is The most important reduction since the start of Pandemic " of COVID-19, reacted Srijan Katyal, of the brokerage company ADSS. It will probably "dopy prices", he added, in reverse of the efforts of Westerners to stop the outbreak of energy costs weighing on global growth. The two global gross references have indeed lost ground in recent weeks, evolving around 90 dollars per barrel, far from the summits recorded in March at the start of the war in Ukraine (nearly $ 140).

Unsurprisingly, the news caused an icy Washington reaction. Joe Biden is "disappointed with the short view of OPEC", according to a statement published on Wednesday by the White House. The American president has been trying for months to try to stem the flight prices that erodes the purchasing power of households, even going so far as to go to Riyadh in July during a very controversial visit.

Top Democrat urges US block on weapons sales to Riyadh .
A powerful US senator called Monday for Washington to freeze all cooperation with Saudi Arabia over its decision to "underwrite" Russia's war in Ukraine by slashing oil production. "The United States must immediately freeze all aspects of our cooperation with Saudi Arabia, including any arms sales and security cooperation beyond what is absolutely necessary to defend US personnel and interests," Menendez said.Riyadh, Moscow and other top oil producers agreed last week to a deep cut in production to boost crude prices, in a move denounced by the United States as a concession to Moscow that would hurt the global economy.

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