The OPEC+ group of oil producers will consider cutting production by more than 1 million barrels a day at a meeting in Vienna on Wednesday, according to delegates, Bloomberg wrote.
The larger-than-expected cut will reflect the extent of concerns that the global economy is slowing rapidly amid rapid monetary tightening. The strengthening dollar has also impacted prices. Delegates said a final decision on the size of the cuts would not be made before the ministerial meeting.
In February this year, due to the situation around Ukraine, the price of Brent crude oil soared above $125 a barrel. It has since fallen to $85, weakening the impressive gains of Saudi Arabia, Russia, the United Arab Emirates and other coalition members.
The 23-nation alliance is scheduled to meet Wednesday at its headquarters in Vienna, the OPEC secretariat said in a statement. The group has held monthly meetings online and was not expected to meet in person until at least the end of this year.
Banks including JPMorgan Chase & Co. said OPEC+ may need to cut production by at least 500,000 barrels a day to stabilize prices. Helima Croft, chief commodities strategist at RBC Capital Markets LLC, said the group may choose to cut twice as much.
The expert says she suspects they may not want to go for a small reduction.