RIYADH: Oil output by the Organization of the Petroleum Exporting Countries and its allies could be cut by 100,000 barrels per day following a meeting of the group on Monday, according to a source.
Reuters is reporting that the organization, known as OPEC+, is weighing up the move to bolster prices, despite supplies remaining tight.
OPEC+, which includes Russia, agreed to increase output by 648,000 bpd in both July and August, as they fully unwind nearly 10 million bpd of cuts implemented in May 2020 to counter the COVID-19 pandemic.
The group agreed last month to raise production quotas by another 100,000 bpd in September as it faced pressure from major consumers including the US, which are keen to cool prices.
A move to tighten supply was floated by Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, not long after that decision was taken, as he described the oil market as being “in a state of schizophrenia”.
His comments were later backed by Sudan and the UAE.
OPEC+ is set to begin its meeting at 13.00 CEST.
Oil prices
Ahead of the OPEC+ meeting, oil prices climbed more than $2 a barrel.
Brent crude futures rose 2.82 percent, to $95.64 a barrel by 10.50 a.m Saudi time.
US West Texas Intermediate crude gained 2.59 percent, and is priced at $89.12 a barrel.
Despite concerns over the slowing demand for crude, supply conditions continue to remain tight particularly with Russia planning to scale back crude exports.