Oil Prices Jump As OPEC+ Considers 2 Million Bpd Production Cut

Related stories

Dangote Refinery Halts Fuel Discount Program Over Alleged Marketers Fraud

By Abiola Olawale  Dangote Petroleum Refinery and Petrochemicals, owned by...

Are You Pregnant? By Johnson Babalola

As I sat quietly in the backseat of an...

Drama as 16, 17-year-olds Now Allowed to Vote In UK Elections

By Abiola Olawale  The government of the United Kingdom announced...
  • Anonymous OPEC delegates: OPEC+ may consider 2 million bpd production cuts.
  • Despite the growing worry of a severe global recession and the impact that would have on oil demand, the OPEC+ group feels that the markets are largely ignoring market fundamentals.
  • Brent soared to $92 per barrel on the news of a larger-than-expected OPEC+ output cut.

OPEC+ may be considering an even larger cut than previously reported—at up to 2 million bpd, anonymous delegates told media on Tuesday.

As OPEC+ prepares to meet this Wednesday to discuss its oil production plans for November, it is assessing the state of the oil markets—and the current state of oil prices which began to fall in June near levels that some OPEC+ members could find unacceptable.

Despite the growing worry of a severe global recession and the impact that would have on oil demand, the OPEC+ group feels that the markets are largely ignoring market fundamentals. Nevertheless, OPEC+ is considering a hefty production cut—an even heftier one that it was reportedly considering previously.

The first rumor was that Russia was pushing OPEC+ to implement a 1 million bpd production cut. The group was later reportedly considering a production cut between 500,000 bpd and 1 million bpd. Shortly after, yet another source said that OPEC+ was considering an even larger cut of more than 1 million bpd. The latest news from OPEC+ delegates suggests that the group is considering yet another option: a 2 million bpd cut.

Aside from current oil prices, another factor in determining OPEC+’s production plans for November is the group’s available spare capacity—without which the group would be unable to control the market in the future.

An output cut of that magnitude would come shortly after the United States ends its 1 million bpd release of crude oil from its emergency stockpiles.

Crude oil prices have risen over the last few days on the prospect of such an output cut, with Brent now trading above $91. NB: Julianne Geiger for Oilprice.com

Julianne Geiger
Julianne Geiger
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
2027: Intrigues as PDP Confirms Move to Bring Peter Obi Back After Atiku’s DepartureAre You Pregnant? By Johnson Babalola2027: Buhari’s exit Cripples APC in entire North as CPC Loyalists Defect in Large NumbersDrama as 16, 17-year-olds Now Allowed to Vote In UK ElectionsSenate passes $9 billion in spending cuts to public broadcasting, foreign aid requested by TrumpBrazil’s Petrobras Weighs Return to Retail Fuel Market to Reduce PricesBase Handover: France Ends Decades-Long Military Presence in Senegal5 Oil Titans Who Revolutionized the Energy Sector2027: Dele Momodu dumps PDP for Coalition party, ADCBuhari's Honour: Tinubu holds special FEC session as Nigerians Mourn late Hero, Statesman. First Bank Crisis: In High-Stake Intrigues, Otedola Seizes Control with 40% Stake as Oba Otudeko Exits in N324.47bn DealElderstatesman, Emeka Anyaoku, Speaks Again , Urges Nigeria to Adopt a "People’s Democratic Constitution""Nigeria's challenges not about the constitution, but its operators", says ObasanjoNigeria Surpasses OPEC’s 1.5 Million Barrel Oil Quota in June 2025Natasha vs Akpabio: Senate President Heads to Court, Challenges Court Order to Reinstate Senator
X whatsapp