OPEC+, which groups the Organization of the Petroleum Exporting Countries and its Russian-led allies, pumps around 40% of the world’s crude, meaning its policy decisions can have a big impact on oil prices.
Three OPEC+ sources told Reuters on Friday that cuts were being discussed among the options for Sunday’s session, when OPEC+ ministers meet.
OPEC held a brief separate meeting on Saturday, but the ministers did not comment on possible policy decisions afterward.
The sources said the cuts could go as high as 1 million bpd, adding to current cuts of 2 million bpd and voluntary cuts of 1.6 million bpd, announced by surprise in April and taking effect in May. .
If approved, the total volume of reductions would amount to 4.66 million bpd, that is, around 4.5% of world demand.
“This figure is premature, we haven’t gotten into these things (yet),” Iraqi Oil Minister Hayan Abdel-Ghani said ahead of the meetings, when asked about a possible 1 million bpd cut.
Production cuts normally take effect the month after they are agreed, but ministers could also agree to a later application. They could also decide to keep production stable.
Western countries have accused OPEC of manipulating oil prices and undermining the world economy with its high energy costs. The West has also accused OPEC of siding too much with Russia despite Western sanctions over Moscow’s invasion of Ukraine.
In response, OPEC experts and observers have claimed that Western currency issuance over the past decade has fueled inflation and forced oil-producing countries to act to maintain the value of their main export.
Asian countries such as China and India have bought the bulk of Russian oil exports and have refused to join Western sanctions against Russia.