Oil prices could be poised for gains on Monday as delegates say OPEC+ will consider cutting production by 1M bbl/day or more at the group’s meeting this week to help prop up declining crude prices.
It would be the cartel’s second consecutive monthly cut after it reduced production by 100K bbl/day last month.
But the group has been undershooting its targets by more than 3M bbl/day for much of the year, with Russian output falling and producers such as Nigeria struggling to raise production.
The OPEC ministerial session in Vienna on Wednesday will be in-person for the first time since the start of the pandemic, sending a message about the seriousness of the occasion.
Prices have fallen for four straight months as COVID-19 lockdowns in China hurt demand while rising interest rates and a surging U.S. dollar weighed on global financial markets.