Members of the Organization of the Petroleum Exporting Countries (OPEC+) are discussing plans to cut oil production by more than 1 million barrels a day, including further voluntary cuts by member countries. According to a Reuters report citing sources within the organization.
News reports said that Members of OPEC Plus which includes 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 was held during a period of falling oil prices. After heavy volatility in the market in recent months has prompted Saudi Arabia, the largest producer of the group, to advise its members to start cutting production.
OPEC Plus has been slowly raising oil output to make up for the big cuts in 2020.
But the price of oil plunged to less than $90 a barrel. The record high of $120 per barrel a few months ago is a new problem for the group.
A source told Reuters that The production cuts at this upcoming meeting could be as much as what OPEC+ did at its meeting in April 2020, which is about 10 million barrels a day, or about 10% of the supply of the 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 unhappy. He has been pushing Saudi Arabia to keep producing more oil to keep prices low and to cut Russian revenues, while Western countries try 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 a day, or 1 percent of global supply, before another group of sources commented on Sunday. The reduction figure is likely to be more than 1 million barrels per day.
and on Monday a source close to OPEC said members of the group could voluntarily choose to cut their own production further. In addition to the group agreement
- source: Reuters
