OPEC+ countries are discussing options for further oil cuts. One option is to cut oil production by another 1 million barrels per day. This was reported Reuters with reference to sources.
Three OPEC sources told Reuters that in addition to the current cut of 2 b/d, as well as the voluntary cut of 1.6 mb/d in April, an additional 1 mn b/d cut is being discussed.
According to the agency, such a reduction in production is due to the fact that oil prices fall to $75 per barrel, and market analysts are talking about a new supply glut. If this proposal is approved by OPEC members, the volume of cuts will amount to 4.66 million barrels per day, or 4.5% of world demand.
The meeting of representatives of the OPEC + member countries will be held on June 4 in Vienna. Just yesterday, June 2, other sources Reuters OPEC+ said that further cuts in oil production are unlikely.
Market participants fear that OPEC+ may further cut production to raise prices. These fears were heightened by Saudi Energy Minister Abdel Aziz bin Salman Al Saud, who advised oil speculators to “be careful.” After this announcement, futures prices for Brent crude oil began to rise by 1% and 1.2%.
According to the Financial Times, the OPEC leadership banned journalists from Reuters, Bloomberg and the Wall Street Journal from visiting its headquarters in Vienna on June 4. According to the publication, this is due to the fact that due to the preliminary comments that OPEC representatives give to these media, oil prices are jumping.