OPEC considers oil cut of over 1 million barrels a

OPEC+ considers oil cut of over 1 million barrels a day

  • Cuts could include a voluntary Saudi reduction
  • Biggest cut since pandemic was brought down
  • Oil fell on rising Fed rates and weak economy

DUBAI, Oct 2 (Portal) – OPEC+ will consider cutting oil production by more than a million barrels per day (bpd) next week, OPEC sources said on Sunday, in the biggest move so far since the COVID-19 pandemic address the weakness of the oil market.

The meeting comes on Oct. 5 amid falling oil prices and months of severe market volatility, which prompted top OPEC+ producer Saudi Arabia to say the group could cut production.

OPEC+, which unites OPEC countries and allies like Russia, has refused to increase production to lower oil prices despite pressure from big consumers, including the United States, to help the global economy.


Still, prices have fallen sharply over the last month on concerns about the global economy and a rally in the US dollar following the US Federal Reserve’s rate hike.

A major production cut threatens to anger the United States, which has been pressuring Saudi Arabia to keep pumping more to further slash oil prices and cut revenues for Russia, while the West tries to blame Moscow for sending troops in to punish Ukraine.

The West accuses Russia of invading Ukraine, but the Kremlin speaks of a special military operation.

Saudi Arabia has not condemned Moscow’s actions given the difficult relations with the government of US President Joe Biden.

Last week, a source familiar with the Russian mindset said Moscow would welcome OPEC+ cutting 1 million bpd, or 1 percent of global supply.

That would be the biggest cut since 2020, when OPEC+ cut production by a record 10 million bpd as demand collapsed due to the COVID pandemic. The group spent the next two years trying to reverse these record cuts.

On Sunday, the sources said the cut could exceed 1 million bpd. One of the sources suggesting cuts could also include a voluntary additional reduction in production by Saudi Arabia.

OPEC+ will meet in person in Vienna for the first time since March 2020.

Analysts and OPEC watchers like UBS and JP Morgan have suggested in recent days that a cut of around 1 million bpd is on the horizon and could help stem the price slide.

“$90 oil is non-negotiable for OPEC+ leaders, so they will act to maintain that price floor,” said Stephen Brennock of oil brokerage PVM.


Reporting by Maha El Dahan, Olesya Astakhova and Alex Lawler; Edited by Gareth Jones, Jan Harvey and Raissa Kasolowsky

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