OPEC+ eyes big output cuts to prop up oil prices

STORY: Soaring energy prices may be behind a global cost of living crunch, but OPEC and allies have a different worry.

The oil producers’ group is concerned that the black stuff may be getting too cheap.

Prices have fallen from recent highs of $120 per barrel to below $90, amid worries about a global slowdown and falling demand.

Now Wednesday (October 5) will see a meeting of OPEC+, which includes Russia and other allies.

It’s expected to see agreement on big output cuts in a bid to prop up prices.

One source told Reuters the meeting could be as significant as the one in April 2020, when the global health crisis hit.

Back then OPEC agreed to cut global supply by around 10 million barrels per day - or about 10% of global supply.

Any such move now will go down very badly in Washington.

The U.S. government has been pressing OPEC to pump more oil to further reduce prices and help the global economy.

It also wants to cut revenues to Russia, as part of moves to punish Moscow for sending troops into Ukraine.

However, leading OPEC nation Saudi Arabia has refused to condemn Russia amid difficult relations with the U.S. administration.

International benchmark Brent crude was up around 4% on Monday (October 3) following the latest reports.