The next meeting of the so-called OPEC + coalition, which includes Russia, may see further cutbacks in oil production than anticipated, according to Bloomberg Agency.
Next Wednesday is the OPEC Plus meeting, and for the first time since the Corona pandemic, when the meetings were held separately, the organization’s energy ministers members will be present in person.
According to a report by Bloomberg, OPEC members will discuss cutting production to one million barrels per day during their next meeting, which will be held in Vienna at the organization’s headquarters. This is a reduction from the 500 thousand barrels per day estimate made in the past, which will cause an increase in oil prices after a period of declines. its lowest point considering the Corona pandemic.
Additionally, according to sources cited by Reuters news agency, Russia would suggest cutting production by up to 500,000 barrels per day at this meeting.
At their most recent meeting, OPEC+ decided to reduce production by 100,000 barrels per day, marking the first decrease since 2020.
For its part, JPMorgan said that in order to stabilise prices, “OPEC + has to drop output by at least 500,000 barrels per day.
Amid growing concerns that the global economy will enter a recession and the oversupply that would result from the downturn will cause prices to drop, OPEC + is working to support oil prices.
The OPEC summit takes place when oil prices are falling; for example, the benchmark Brent crude contract ended trading on Friday at 87.96 dollars a barrel, down 11% and 22% on a monthly and quarterly basis.
US West Texas oil had weekly increases of 1% but monthly and quarterly losses of roughly 11% and 25%, respectively. It lost 2. 1%, or $1. 74, to record $79. 49 per barrel.
According to Bloomberg, OPEC and Russia have set a date to boost oil prices.
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