Oct 2, 2022
VOT Research Desk
Key Insights and Analysis
Delegates say that when the OPEC+ group of oil producers meets on Wednesday in Vienna, they will think about cutting production by more than 1 million barrels per day.
The extent of concern that the global economy is sluggish in the face of rapidly tightening monetary policy would be reflected in a decrease that was greater than
anticipated.
Prices have also been affected by a stronger dollar. According to the delegates, the size of the cuts will not be decided in its entirety until ministers meet.
After Russia invaded Ukraine in February, Brent crude rose above $125 per barrel. Since then, it has fallen to $85, stifling the extraordinary fortunes enjoyed by Saudi Arabia, Russia, the United Arab Emirates, and other coalition members.
A statement released on Saturday by the OPEC secretariat stated that the 23-nation alliance will meet on Wednesday at its headquarters in Vienna.It wasn’t expected that the group would hold an in-person gathering until at least the end of this year; instead, it has been meeting online on a monthly basis.
According to banks like JPMorgan Chase & Co., OPEC+ may need to cut production by at least 500,000 barrels per day to keep prices stable, or it may choose to cut production twice as much.
