MOSCOW, Sep 27 – PRIME. Production cuts by the OPEC+ alliance are needed to reverse the downtrend in the oil market, which arose against the backdrop of a strengthening dollar and fears of a recession. This was reported on Tuesday by UBS analysts.
“The alliance’s lack of production cut efforts is likely to put further downward pressure on prices,” analysts at the bank said.
“The cartel and its allies should announce production cuts of at least 0.5 million bpd in the coming days,” UBS added.
The next OPEC+ meeting will be held on October 5.
Oil prices are falling on fears that a possible recession will lead to a reduction in demand and an increase in supply in the oil market, the bank stressed. In addition, weakening risk appetite in financial markets, associated with aggressive monetary tightening in the US and Europe, is also putting pressure on prices.
Oil on Tuesday rises in price by more than 1% after falling to 9-month lows a day earlier. Prices are rising amid signs that OPEC+ may cut production to avoid a further drop in quotes.