Opec+ poised to consider output cut of one million barrels a day

LONDON: The Organisation of the Petroleum Exporting Countries and allies (Opec+) group of oil producers will consider cutting output by more than one million barrels a day when it meets in Vienna on Wednesday, say delegates.

A larger-than-expected reduction would reflect the scale of concern that the global economy is slowing fast in the face of rapidly tightening monetary policy.

A stronger dollar has also weighed on prices.

A final decision on the size of the cuts won’t be made until ministers meet, the delegates said.

Brent crude soared following Russia’s invasion of Ukraine in February.

It’s since dropped tempering the spectacular windfall enjoyed by the Saudi Arabia, Russia, the United Arab Emirates and other members of the coalition.

The 23-nation alliance is scheduled to meet on Wednesday at its headquarters in Vienna, Opec’s secretariat said a statement on Saturday.

The group has been meeting on-line on a monthly basis and wasn’t expected to arrange an in-person gathering until at least the end of this year.

Banks including JPMorgan Chase & Co said Opec+ may need to lower output by least 500,000 barrels a day to stabilise prices.

Helima Croft, chief commodities strategist at RBC Capital Markets LLC, has said the group may opt for a cut twice that large.

“I suspect that they might not want to go in person for a minor move,” Croft said. — Bloomberg

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