OPEC and its allies, known as OPEC+, are set to meet on Sunday to discuss a new deal aimed at addressing flagging oil prices and an impending supply glut. According to sources familiar with the discussions, additional production cuts are being considered, which could amount to 1 million barrels per day (bpd) on top of the existing cuts of 2 million bpd.
The April announcement of voluntary cuts of 1.6 million bpd helped to drive oil prices higher, but they have since retreated due to concerns about global economic growth and demand. The new cuts would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand.
The ministers could also decide to hold output steady or agree on a later implementation. The meeting will also address the issue of baselines for 2023 and 2024, from which each member performs cuts, which has previously turned contentious.
