A group of ministers from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) has recommended lowering the cartel’s daily production caps to 2 million barrels.

In an effort to halt the decline in oil prices brought on by the faltering global economy, this cut advice was essential.

Delegates say that before ministers make a final policy decision today, they will debate the suggestion from the group’s Joint Ministerial Monitoring Committee later on Wednesday.

Since several nations are currently pumping much below their quotas, the proposal’s impact on world supply would be smaller than the headline figure indicates if it is approved by the full OPEC+ summit.

That implies that they wouldn’t need to cut production in order to comply with their new restrictions, according to Bloomberg.

According to Bloomberg calculations based on September output numbers, a drop of 2 million barrels per day in the group’s output objective, shared pro rata, would only need eight nations to reduce actual production and would result in an accurate cut of only 880,000 barrels per day.

The output drop would still be the largest OPEC+ production cut since 2020, which might cause further shocks to a world economy already struggling with inflation brought on by high energy prices.

According to the report, the action would also offend the United States, which might lead to a reaction from Washington.

Prior to the November midterm elections, President Joe Biden’s trip to Saudi Arabia earlier this year in pursuit of increased output and cheaper gas costs for Americans was crucial.

According to those familiar with the matter, US officials were attempting to rebut the decision to reduce output by calling their Gulf counterparts earlier on Wednesday.