OUR Organization of the Petroleum Exporting Countries and his allies (OPEC+) agreed today to the biggest cut in oil production since the outbreak of the Covid-19 pandemic in 2020, despite backlash and pressure from the United States and other countries.

Thirteen member countries of OPEC, led by Saudi Arabiaand their ten allies (led by Russia) agreed to cut production by two million barrels a day in November, according to a related announcement.

The cut is expected to push up oil prices, which have eased on fears of a global economic recession, higher interest rates by the US central bank (Fed) and a stronger US dollar.

The United States has been pressuring OPEC not to cut production. “Rising oil prices due to significant production cuts will irritate the Biden administration ahead of the US midterm elections,” Citi analysts said.

US President Joe Biden was “disappointed” by OPEC+’s “short-sighted” decision to drastically cut oil production, a White House official said.

JPMorgan believes it is almost certain that Washington will retaliate by releasing US strategic oil reserves.