Bloomberg: OPEC+ may cut production by two million barrels per day

MOSCOW, 4 Oct — PRIME. The OPEC+ alliance is considering cutting oil production by 2 million barrels per day, Bloomberg reports, citing delegates.

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1 OPEC+ production cuts will increase the risk of a sharp rise in oil prices

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OPEC+ production cuts will increase the risk of a sharp rise in oil prices

At a meeting on Wednesday, the alliance could discuss such a cut, as well as smaller cuts of 1 to 1.5 million bpd, delegates said.

It notes that some members of the alliance are already extracting much less than their quotas and can automatically meet the new limit without having to cut production.

On this news, world oil prices on Tuesday evening are accelerating growth, according to trading data.

As of 18.30 Moscow time, the price of December futures for Brent crude oil is growing by 3.3%, to $91.79 per barrel, November futures for WTI – by 3.32%, to $86.41. Prior to the publication of the message, Brent was trading at around $91 per barrel, WTI at around $85.

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Last Sunday, Bloomberg wrote that the alliance would consider cutting production by more than a million barrels per day.

News about the decline in production fuels investors’ fears about the lack of oil in the markets and supports the growth of quotations.

On Wednesday, October 5, the OPEC+ meeting will take place in Vienna. The meeting will be held face-to-face for the first time since March 2020, when ministers began meeting via videoconference due to the pandemic.