by Julianne Geiger at Oil Price
- Anonymous OPEC delegates: OPEC+ may consider 2 million bpd production cuts.
- Despite the growing worry of a severe global recession and the impact that would have on oil demand, the OPEC+ group feels that the markets are largely ignoring market fundamentals.
- Brent soared to $92 per barrel on the news of a larger-than-expected OPEC+ output cut.
OPEC+ may be considering an even larger cut than previously reported—at up to 2 million bpd, anonymous delegates told media on Tuesday.
As OPEC+ prepares to meet this Wednesday to discuss its oil production plans for November, it is assessing the state of the oil markets—and the current state of oil prices which began to fall in June near levels that some OPEC+ members could find unacceptable.
Despite the growing worry of a severe global recession and the impact that would have on oil demand, the OPEC+ group feels that the markets are largely ignoring market fundamentals. Nevertheless, OPEC+ is considering a hefty production cut—an even heftier one that it was reportedly considering previously.
The first rumor was that Russia was pushing OPEC+ to implement a 1 million bpd production cut. The group was later reportedly considering a production cut between 500,000 bpd and 1 million bpd. Shortly after, yet another source said that OPEC+ was considering an even larger cut of more than 1 million bpd. The latest news from OPEC+ delegates suggests that the group is considering yet another option: a 2 million bpd cut.
Aside from current oil prices, another factor in determining OPEC+’s production plans…
Continue Reading