OPEC+ announces sharp cut in oil production; White House concerned with gas prices

INDIANAPOLIS (WISH) — At a meeting in Germany, a group of the world’s major oil producers decided to make the most significant cut to oil production in several years despite pressure from the U.S. to pump more oil.

OPEC+, an international cartel of crude oil producers, met Wednesday in Frankfurt. The cartel’s 23 member nations control about half of the world’s crude oil supply, according to Forbes.

Energy ministers at the meeting decided to “cut production by 2 million barrels per day starting in November,” according to the Associated Press.

OPEC+ said in a statement that the decision was based upon “uncertainty that surrounds the global economic and oil market outlooks,” the Associated Press says.

The decision to slash oil production is a move the White House says could cause a “total disaster” ahead of the midterm election.

Analysts say the group wants to regain control of a market it believes has deviated from supply and demand fundamentals.

Cutting production could significantly impact everything from the cost of gasoline at the pump to goods and services globally. For weeks, White House officials have called on its foreign counterparts in Middle Eastern countries to vote against cutting oil production.

Hoosiers have already seen a jump in gas prices due to an explosion at the BP refinery in Toledo, Ohio, which forced the facility to close. The company produces about 160,000 barrels of oil daily, and Hoosiers feel the impact at the pump. 

“[It’s] not a lot compared to other refineries, but still any blip in our supply system can cause a shortage,” Scott Imus, executive director of the Indiana Food and Fuel Association, said.

Gas prices in Indiana were once again above $4 on Wednesday, with some stations in Indianapolis charging $4.29 and above.

Experts also suggest that this time of year is when some refineries go offline for maintenance, which could also keep gas prices high.