OPEC+ agrees to a small production cut

The major oil-producing countries have agreed to cut production by a small amount in October in a bid to reverse a downward trend in crude prices.

The Organization of the Petroleum Exporting Countries and its allies decided at an online meeting on Monday to cut 100,000 barrels a day.

The group is known as OPEC Plus. Russia is a member of the group. OPEC Plus's decision to revert to August production levels comes amid growing concerns that the global economy is going to slow down, due to interest rate hikes in Europe and the United States.

The group is reversing its course from its previous meeting. Since last summer, the group had been gradually ramping up production to meet increased post-pandemic demand.

Analysts say oil-producing countries are wary of the progress that is being made in the nuclear negotiations between the world powers and Iran. This is because a nuclear agreement with Tehran will likely lead to an increase in the amount of oil that Iran supplies.

The group said in a statement that, if it is necessary, it is ready to hold a meeting at any time to address market developments.