(NBC) – In a move that could send gas and oil prices back up in the US, OPEC announced it will cut oil production by two million barrels per day.
Meeting Wednesday in Vienna, Austria the organization of the petroleum exporting countries and its allies, together called OPEC+, said the production cut set to start in November was based on the “uncertainty that surrounds the global economic and oil market outlooks.”
Oil prices have fallen to roughly $80 a barrel from more than $120 in early June.
The move is a major reversal from OPEC’s efforts to restore deep output cuts made during the COVID-19 pandemic. It also comes despite calls from the Biden administration for the group to pump more to lower fuel prices.
In a statement, the Biden administration said it was disappointed in OPEC+’s’ decision, calling it “shortsighted” in light of global energy prices already lifted higher by Russia’s invasion of Ukraine.
OPEC+ will hold its next meeting on December 4th.