OPEC+ countries also agreed to extend oil production cuts they announced in April through the end of 2024, reducing production by more than 1 million barrels per day.
Oil prices surged after Saudi Arabia and some other oil producers announced they're reducing their oil output. That will send gas prices higher – and benefit energy companies in America.
The decision at a meeting of oil ministers Sunday comes a day ahead of the planned start of two measures aimed at hitting Russia's oil earnings in response to its invasion of Ukraine.
Plans take effect next week that would ban most Russian oil imports from Europe and put a price cap on the oil going elsewhere. But Russia could still make money off oil to fund its war in Ukraine.
A major oil output cut by Saudi Arabia, Russia and other oil producers has drawn sharp accusations in Washington.
The weakening economy around the world will drive down demand for oil in the coming months, according to OPEC, while the U.S. government warns that households will pay more for heat this winter.
The 2 million bpd cut in oil production was backed by Saudi Arabia and could benefit Russia. The OPEC+ meeting took place as much of the world is battling soaring energy costs and rising inflation.
The average price of gasoline nationwide is expected to drop below $4 a gallon in the coming days as prices continue to fall from the record highs hit in June.
A roundup of key developments and the latest in-depth coverage of Russia's invasion of Ukraine.
The EU ban on Russian oil imports will likely lead to higher crude and gasoline prices, further upending energy markets.
The threat of war between Russia and Ukraine is driving prices sharply higher, but there's more at play than just geopolitical tensions.
Presidents don't set the gas price you pay at the pump, but they're often blamed for it. And right now, high energy prices are helping send inflation to an over 30-year high.
Oil prices were surging, but a dramatic meeting of many of the world's crude producers has thrown things into a bit of turmoil.
Citing vaccination rollouts and various stimulus packages globally, the powerful oil cartel and its allies made a surprise announcement that it would gradually boost oil production over three months.
Oil prices have risen remarkably over the last few months. Now the powerful oil cartel is keeping a lid on supply in an attempt to push crude prices even higher.