Energy stocks are on the move Wednesday after OPEC+ agreed to cut the amount of oil produced.
The organization of oil-producing countries will be cutting the amount of oil they make by 2 million barrels per day. That comes as they seek to increase the price of oil as its been slipping over the last few months.
OPEC+ says the oil production cuts will start in November. Even so, that doesn’t necessarily mean energy prices will increase. Instead, what’s more likely is that oil prices will stabilize at current levels.
Making matters worse is the oil production cut being worse than expected. Analysts were originally predicting that OPEC+ would only cut oil production by 1 million barrels per day.
OPEC+ Resists President Biden’s Call For More Oil
President Joe Biden has been pushing for more oil production to help reduce the effects of inflation on the economy. However, today’s move from OPEC+ shows that the President’s concerns aren’t the same as theirs.
Jake Sullivan, the U.S. National Security Adviser, and Brian Deese, the U.S National Economic Council Director, said the following in a statement to The Washington Post:
The President is disappointed by the shortsighted decision by OPEC Plus to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.
Investors seeking out more of the latest stock market news are in luck!
We’ve got all of the latest stock news traders need to know about for Wednesday! That includes what’s going on with shares of Nauticus Robotics (NASDAQ:KITT), Vinco Ventures (NASDAQ:BBIG), and Tesla (NASDAQ:TSLA) stock today. You can read up on all of that news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.