Members of the Organization of the Petroleum Exporting Countries (OPEC+) are discussing plans to cut oil production by more than 1 million barrels per day, including voluntary further cuts by member countries. According to a Archyde.com report citing sources within the organization.
News reports stated that OPEC Plus members which consists of Its original members are Saudi Arabia, Iraq, Iran, Kuwait and Venezuela, as well as Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan. The meeting is scheduled for October 5 in Vienna. This will be the first face-to-face meeting since March 2020.
The meeting took place during a period of falling oil prices. After heavy volatility in the market in recent months has prompted Saudi Arabia, the group’s largest producer, to advise its members to start cutting production.
OPEC Plus has been slowly raising oil output to compensate for the big 2020 cuts.
But the price of oil plummeted to less than $90 a barrel. From a record high of $120 a barrel a few months ago is a new problem for the group.
A source told Archyde.com that The production cuts at this upcoming meeting could be as much as what OPEC+ did at its April 2020 meeting at around 10 million barrels per day, or about 10% of the supply. world as a result of the COVID-19 pandemic. That greatly reduces the need for energy.
But if there are actual production cuts, the US would be very dissatisfied. It has been pushing Saudi Arabia to continue producing more oil to keep prices low and to cut Russia’s revenues, while Western countries are trying to punish Moscow for its invasion of Ukraine.
last week A source close to Russia told reporters that Moscow will likely want OPEC Plus to cut output by 1 million barrels per day, or 1 percent of global supply, before another group of sources commented on Sunday. The reduction figure is likely to exceed 1 million barrels per day.
and on monday A source close to OPEC said the group’s members could voluntarily choose to cut their own production further. In addition to the group agreement
- source: Archyde.com