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Russia proposes to cut production by 1 million barrels at next month’s OPEC+ meeting = stakeholder | Reuters

Russia is likely to propose a production cut of around 1 million barrels per day at the October 5 ministerial meeting of the Organization of the Petroleum Exporting Countries (OPEC) and non-member oil producers OPEC+. FILE PHOTO: Algiers, Algeria, September 2016. REUTERS/Ramzi Boudina

(Reuters) – Russia is likely to propose a production cut of around 1 million barrels per day at a OPEC+ ministerial meeting on October 5. is large. A person familiar with Russia’s thinking revealed on the 27th.

With oil prices on a downward trend, Saudi Arabia, the other influential member of OPEC+, is ready to say it can cut production.

However, four OPEC+ sources said ministers had not yet started talking about the next meeting.

OPEC+ has so far refused to comply with demands from major consuming countries such as the United States. Even so, crude oil prices are rapidly declining this month due to concerns about the future of the global economy and the appreciation of the dollar.

JPMorgan said earlier this month that OPEC+ might need to intervene in the market by cutting output by up to 1 million barrels per day. A team of UBS analysts also said, “Only OPEC+ production cuts can stop short-term (price) declines.”

However, a deal would have limited effect as many OPEC+ producers are falling short of their production targets due to sanctions and underinvestment. Overall OPEC+ output fell short of target in August by 3.58 million barrels per day.

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