Overnight Market Review (2022.9.28) Russia may propose at the next OPEC+ meeting to cut the group’s output by 1 million barrels per day.
The news comes just a day after comments at Monday’s APPEC oil meeting that global oil inventories will rise next year due to weak demand and a stronger dollar — OPEC must cut production if it wants to prevent oil prices from falling further. .
OPEC will have to cut output by 500,000-1 million bpd to keep Brent output above $90 a barrel.
Now, Russia itself can propose a cut of 1 million barrels per day — a proposal that carries weight as one of the two largest members of the OPEC+ group. The next OPEC+ meeting is on Oct. 5, where it will decide on output targets for November. The current release of the U.S. Strategic Petroleum Reserve, which has helped support lower oil inventories, will also cease in November.
OPEC+ cut its October output target by 100,000 bpd at a previous meeting, signaling its willingness to respond quickly to the changing oil market.
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