These reports come against the backdrop of falling oil prices and months of high market volatility.
The OPEC+ oil cartel will meet in Vienna on Wednesday for the first time since Covid-19 restrictions were introduced in 2020.
(Data Ruvic / File / Archyde.com)
OPEC+ will consider an oil production cut of more than one million barrels per day (bpd) at its Oct. 5 meeting, OPEC sources told Archyde.com.
Sunday’s figure is slightly higher than reduction estimates given last week, which ranged between 500,000 bpd and 1 million bpd.
The meeting to consider a cut in global oil supply comes at a time when governments around the world are scrambling to control runaway inflation. A reduction in supply leads to higher oil prices for consumers.
Wednesday’s face-to-face meeting of the 13 Saudi-led OPEC members and its 10 Saudi-led allied members Russia will be the first in the Austrian capital since spring 2020.
“This is a meeting that is taking place at a very interesting global time,” one of the sources said.
Saudi Arabia, the de facto leader of OPEC, first raised in August the possibility of cuts to correct the market.
The cartel had agreed to huge production cuts in 2020 when the pandemic sent oil prices crashing, but started ramping up production last year when the market improved.
Today, the production cut is being considered due to lower oil prices from multi-year highs reached in March and market volatility.
Oil prices soared to nearly $140 a barrel in March following the start of Russia’s war in Ukraine, but have since fallen to around $80 a barrel amid recession fears.
READ MORE : OPEC+ agrees to cut oil production and seeks to boost prices
Source: fr.palestinaliberation.com and agencies