OPEC+ looks set for deep cuts to its oil output targets when it meets on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.
The potential OPEC+ cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago due to fears of a global economic recession, rising U.S. interest rates and a stronger dollar.
OPEC+, which includes Saudi Arabia and Russia, is working on cuts of 1-2 million barrels per day, sources told Reuters, with several sources saying cuts could be closer to 2 million.
The United States is pushing OPEC not to proceed with the cuts arguing that fundamentals don’t support them, a source familiar with the matter said.
Sources said it remained unclear if cuts could include additional voluntary reductions by members such as Saudi Arabia or if cuts could include existing under-production by the group.
OPEC+ fell about 3.6 million bpd short of its output target in August.
Source: National News Agency