OPEC’s decision to cut oil production by two million barrels per day, to be implemented from November to halt the oil price slide, has been condemned by influencers in the USA.
According to data and analytical company, GlobalData, the deepest production cut since 2020 will create supply disruption likely to lead to a spike in oil prices.
GlobalData said Twitter Influencers’ conversations increased substantially during during the first week of October as OPEC met to discuss crude oil output.
Smitarani Tripathy, Social Media Analyst at GlobalData, comments: “Twitter Influencers are of an opinion that the OPEC decision to slash oil production will raise oil prices further. A few of them also suggest that the move will not only damage the Western’s price cap decision on Russian oil and gas supplies but may also hit the global economy with a further rise in inflation.
On the US decision to release oil from Strategic Petroleum Reserve (SPR) to control prices, some influencers suggested that the US should rather boost domestic oil production instead of releasing from the reserve to ensure energy security.”
Below are a few popular influencer opinions captured by GlobalData’s Social Media Analytics Platform:
- Michael Shellenberger, President at Environmental Progress, has suggested that the US should have focused on increasing domestic production rather than pleading OPEC on maintaining or increasing production.
- Daniel Lacalle, Chief Economist at Tressis says that the shale production in the US is likely to rise following the OPEC decision.
- Andy Puzder, CEO at CKE Restaurants, Inc says that the US should focus on production rather than releasing SPR.
- Hamza Shaban, Business Reporter at The Washington Post, has opined that OPEC production cut will not only drive energy prices and inflation higher but also help Russia to finance the war. A fallout of Democrats can be expected in the midterm election in the US.
- Dr. Maria Shagina, Research Fellow for Economic Sanctions, IISC, has said the OPEC’S decision to cut production is an asymmetrical and politicized response as this will damage the West’s plan to cut Russia’s revenue.
- Armine Yalnizyan, an Economist expects the massive cut in production will lead oil prices to rise as a production cut of two million barrels per day is equivalent to 2% of production.
- Heather Long, Economic Columnist at Washington Post is expecting gas prices to rise, undercutting efforts to help Ukraine.
