OPEC and its allies began two days of meetings on Saturday which may culminate in further production cuts of as much as 1 million barrels per day, OPEC+ sources told Reuters, as the organisation faces flagging oil prices and a looming supply glut.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world's crude, meaning its policy decisions can have a major impact on oil prices.

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Three OPEC+ sources told Reuters on Friday that cuts were being discussed among options for Sunday's session, when OPEC+ ministers gather at 2 p.m. (1200 GMT) in Vienna. Before then, OPEC ministers will meet at 11 a.m. on Saturday.

The sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd, announced in a surprise move in April and which took effect in May.

If approved, this would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand.

"This number is premature, we didn’t go into these things (yet)," Iraq's oil minister Hayan Abdel-Ghani told reporters on Saturday when asked about a possible cut of 1 million bpd.

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Typically, production cuts take effect the following month after they are agreed, but ministers could also agree a later implementation.

Western nations have accused OPEC of manipulating oil prices and undermining the global economy through 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 officials have said the West's money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export.

Watch | Pakistan to begin barter trade with Afghanistan, Iran and Russia

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Asian countries such as China and India have bought the lion's share of Russian oil exports and refused to join Western sanctions on Russia.

<h2>Surprise announcement&nbsp;</h2>

"We look forward to a resolution that will secure sustainability of balance of supply and demand," said UAE's Energy Minister Suhail Al Mazroui.

Ministers spoke to reporters in their hotels in Vienna. OPEC has denied media access to its headquarters to reporters from Reuters and other news media.

The surprise output announcement in April helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated, under pressure from concerns about global economic growth and demand. On Friday, international benchmark Brent settled at $76.

Last week, Saudi Arabia's Energy Minister Prince Abdulaziz said investors who were shorting the oil price, or betting on a price fall, should "watch out", which many market watchers interpreted as a warning of additional supply cuts.

Russian Deputy Prime Minister Alexander Novak, however, subsequently said he did not expect any new steps from OPEC+ in Vienna, Russian media reported. Novak, who is on a U.S. sanctions list, is expected in Vienna for Sunday meetings.

The International Energy Agency expects global oil demand to rise further in the second half of 2023, potentially boosting oil prices.

Analysts at JPMorgan, however, said OPEC had not acted quickly enough to adjust supply to record high levels of U.S. output and higher than expected Russian exports.

"There is simply too much supply," the JPMorgan analysts said in a note, noting extra cuts could amount to around 1 million bpd.

Edward Moya at brokerage OANDA said: "The oil market is doubtful a consensus for another output cut can be reached between the Saudis and Russians, but traders should never underestimate what the Saudis will do and leverage during OPEC+ meetings."

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OPEC and its allies began two days of meetings on Saturday which may culminate in further production cuts of as much as 1 million barrels per day, OPEC+ sources told Reuters, as the organisation faces flagging oil prices and a looming supply glut.

OPEC and its allies began two days of meetings on Saturday which may culminate in further production cuts of as much as 1 million barrels per day, OPEC+ sources told Reuters, as the organisation faces flagging oil prices and a looming supply glut. OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world's crude, meaning its policy decisions can have a major impact on oil prices. Also Read | India's electric two-wheeler retail sales hit record high in May 2023 Three OPEC+ sources told Reuters on Friday that cuts were being discussed among options for Sunday's session, when OPEC+ ministers gather at 2 p.m. (1200 GMT) in Vienna. Before then, OPEC ministers will meet at 11 a.m. on Saturday. The sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd, announced in a surprise move in April and which took effect in May. If approved, this would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand. "This number is premature, we didn’t go into these things (yet)," Iraq's oil minister Hayan Abdel-Ghani told reporters on Saturday when asked about a possible cut of 1 million bpd. Also Read | Elon Musk's tweet on #WhatIsAWoman fans Twitter buzz. Here's all you need to know Typically, production cuts take effect the following month after they are agreed, but ministers could also agree a later implementation. Western nations have accused OPEC of manipulating oil prices and undermining the global economy through 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 officials have said the West's money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export. Watch | Pakistan to begin barter trade with Afghanistan, Iran and Russia × Asian countries such as China and India have bought the lion's share of Russian oil exports and refused to join Western sanctions on Russia. Surprise announcement "We look forward to a resolution that will secure sustainability of balance of supply and demand," said UAE's Energy Minister Suhail Al Mazroui. Ministers spoke to reporters in their hotels in Vienna. OPEC has denied media access to its headquarters to reporters from Reuters and other news media. The surprise output announcement in April helped to drive oil prices about $9 per barrel higher to above $87, but they swiftly retreated, under pressure from concerns about global economic growth and demand. On Friday, international benchmark Brent settled at $76. Last week, Saudi Arabia's Energy Minister Prince Abdulaziz said investors who were shorting the oil price, or betting on a price fall, should "watch out", which many market watchers interpreted as a warning of additional supply cuts. Russian Deputy Prime Minister Alexander Novak, however, subsequently said he did not expect any new steps from OPEC+ in Vienna, Russian media reported. Novak, who is on a U.S. sanctions list, is expected in Vienna for Sunday meetings. The International Energy Agency expects global oil demand to rise further in the second half of 2023, potentially boosting oil prices. Analysts at JPMorgan, however, said OPEC had not acted quickly enough to adjust supply to record high levels of U.S. output and higher than expected Russian exports. "There is simply too much supply," the JPMorgan analysts said in a note, noting extra cuts could amount to around 1 million bpd. Edward Moya at brokerage OANDA said: "The oil market is doubtful a consensus for another output cut can be reached between the Saudis and Russians, but traders should never underestimate what the Saudis will do and leverage during OPEC+ meetings." WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. ×

OPEC+ begins meetings, likely to opt for further oil output cut amid flagging prices

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement.

The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April 2022 to the end of 2022.

Earlier in July, OPEC+ members could not agree on easing production cuts due to deadlocked talk as a result of a row between Saudi Arabia and UAE.

Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand.

The aim was to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic.&nbsp;

'Consensus building'

In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust," leading to a stalemate.

But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less.

Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to say how the quotas were set and beneficiaries chosen, saying it had been part of "consensus-building". 
Observers had expected a deal.&nbsp;

"A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&amp;P Global Platts, which specialises in coverage of the energy industry.

Oil prices -- which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains.

(With inputs from agencies)

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement.

World's major oil producers agreed on Sunday to continue to boost output modestly from August. An Opec+ meeting agreed to raise output by 400,000 barrels per day (bpd) each month from August, the Vienna-based group said in a press statement. The grouping will "assess market developments" in December, it said. The deal also extends a deadline on capping output from April 2022 to the end of 2022. Earlier in July, OPEC+ members could not agree on easing production cuts due to deadlocked talk as a result of a row between Saudi Arabia and UAE. Since May, the 23-member grouping, which also includes Russia, had raised oil output bit by bit, after slashing it more than a year ago when the coronavirus pandemic crushed demand. The aim was to return to pre-pandemic production levels, with the alliance still pumping 5.8 million bpd less than it was before the pandemic. 'Consensus building' In a rare challenge to OPEC leader Saudi Arabia, the UAE rejected the proposed deal earlier this month as "unjust," leading to a stalemate. But in a compromise, Sunday's discussions agreed to adjust output quotas next May for the UAE, Iraq, Kuwait, Russia and Saudi Arabia itself, meaning their actual cuts will be less. Saudi Energy Minister Abdulaziz bin Salman, who chairs the OPEC group, declined to say how the quotas were set and beneficiaries chosen, saying it had been part of "consensus-building". Observers had expected a deal. "A flurry of talks were held on Saturday to try and close the gap," tweeted Herman Wang, an editor of S&P Global Platts, which specialises in coverage of the energy industry. Oil prices -- which had already been sliding owing to concerns about the global economy -- plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains. (With inputs from agencies)

Major oil producers agree on modest output boost from August

As producers balance expectations of a recovery in demand against a possible increase in Iranian supply, OPEC+ is likely to stick to the existing pace of gradually easing oil supply curbs at a meeting on Tuesday.

World Business Watch: OPEC+ likely to stick with current supply plan, sees orderly Iran return

Investors are shifting focus to the upcoming OPEC+ ministerial meeting that is happening this Thursday (01 April). Analysts expect the group to extend supply curbs given dim demand prospects.

World Business Watch: Analysts expect OPEC+ to extend supply curbs

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OPEC+ begins meetings, likely to opt for further oil output cut amid flagging prices

Major oil producers agree on modest output boost from August

World Business Watch: OPEC+ likely to stick with current supply plan, sees orderly Iran return

World Business Watch: Analysts expect OPEC+ to extend supply curbs