OPEC+ is considering oil cuts as big as 2 million barrels per day, an OPEC source told Reuters on Tuesday, a day ahead of a formal meeting of the oil-producing group.
The OPEC+ meeting set to take place on Wednesday is an important one and “will take the right decision”, United Arab Emirates energy minister Suhail al- Mazrouei said.
OPEC+ producers are expected to agree to a deep cut in their output target, curbing supply in an already tight market despite US pressure to pump more.
The United States is pushing OPEC+ nations not to proceed with potential deep oil output cuts, a source familiar with the matter told Reuters. Washington is arguing to OPEC+ nations that economic fundamentals do not support an output cut, the source said.
OPEC+, which includes Saudi Arabia and Russia, is working on cuts in excess of 1 million barrels per day, sources told Reuters this week. The cuts could spur a recovery in oil prices.
