Agency sources said yesterday that Russia is likely to propose at the next OPEC+ meeting that the group cut 1 million barrels per day from the group’s collective output.
The next OPEC+ meeting will be held on October 5, which will determine the output targets for November. It is also in November when the current batch of U.S. SPR releases, which have helped to prop up low oil inventories, will cease.
Also Read: Saudi Arabia, Russia Both Yearn for $100 Oil Price
Reuters noted yesterday that the news comes just a day after comments made at Monday’s APPEC’s oil conference that suggested global oil stocks are set to rise next year amid weak demand and a strong dollar—and that OPEC would have to cut output if they wanted to keep prices from falling further.
OPEC would have to make oil cuts between 500,000 and 1 million bpd to keep Brent above $90 per barrel, Gary Ross, chief executive of Black Gold Investors, said at the meeting on Monday.
Now Russia itself could recommend a million bpd cut—and as one of the two largest members of the OPEC+ group, the county’s recommendations hold weight.
OPEC+ cut production targets for October by 100,000 bpd at the previous meeting, demonstrating its willingness—to respond to the changing oil markets in an expeditious manner.
Also Read: Russia Says Natural Gas Exports To EU Will Drop By 33% Before 2023 End
Brent crude was trading up $1.47 on Tuesday (+1.75%) to $85.53 per barrel, with mysterious and major leaks detected on Nordstream 1 and 2 pipelines that put the likelihood of gas flows resuming to Europe yet this year extremely low.
Some industry analysts have suggested that OPEC+ could move to defend $90 per barrel.
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