How are Saudi Arabia, Russia crushing US and UK economies?

The Organisation of the Petroleum Exporting Countries and its allies including Russia, on October 5, 2022, agreed to reduce oil production by 2 million barrels.

This could have serious consequences for economies around the world, including the US, UK and India, according to curiosityguide.

Now, given the fact that both the US and the UK are already on the brink of recession, this rise in oil prices could exacerbate their situation to the point of disaster. So the US is passing a bill called NOPEC in response!

The UK government is implementing something called a price cap strategy! ! So, in short, Russia, the Middle East and the West are currently engaged in an oil war that could decide the fate of the world economy in 2023! So the question is, Who the hell is OPEC and why are they cutting oil production?

What is this NOPEC law about? What is the UK price cap strategy? Most importantly, how will this oil war affect India and the world in the coming year?

Le Monde adds:

It is not clear what should be interpreted from Russia and Saudi Arabia's joint decision on Wednesday, October 5, to tighten their oil valves.

Is it an economic measure that will support the price of black gold and lead to a rise in fuel prices; or does it represent a friendly agreement between the Wahhabi kingdom and Vladimir Putin’s regime in the face of Western countries, especially the United States, which is asking for the Persian Gulf to pump more oil?

Meeting at the Organization of the Petroleum Exporting Countries (OPEC) headquarters in Vienna for the first time since the start of the coronavirus pandemic, the thirteen members of the cartel and their ten partners, grouped together as OPEC+, decided to reduce their daily oil production by 2 million barrels (2% of global demand), the largest decrease decided since April 2020.

They withdrew 10 million barrels per day from the market after consumption and prices collapsed due to stay-at-home orders at the beginning of the pandemic.

Producing countries are concerned about the downward trend in prices since the beginning of June, when a barrel cost $125 (€126), compared to $140 at the beginning of the war in Ukraine.

Producers fear being caught short by a recession at the end of 2022, or the beginning of 2023, fueled by rising interest rates and a strong dollar.

OPEC’s monthly bulletin in mid-September highlighted these macroeconomic risks, without being alarmist about the global economic situation. OPEC now wants "prices around $90," said Nigerian Oil Minister Timipre Sylva after the meeting.