The Organization of Petroleum Exporting Countries (OPEC) and its allies began two days of meetings on Saturday that may culminate in further production cuts of as much as 1 million barrels per day.
Reuters reports that the group faces flagging oil prices and a looming supply glut.
OPEC held a separate brief meeting on Saturday, but ministers made no comment on possible policy decisions afterwards.
The three sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd, announced in a surprise move in April and which took effect in May.
If approved, this would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand.
“This number is premature, we didn’t go into these things (yet),” Iraq’s oil minister Hayan Abdel-Ghani said prior to the meetings, when asked about a possible cut of 1 million bpd.
Typically production cuts take effect the month after they are agreed, but ministers could also agree a later implementation. They could also decide to hold output steady.
Western nations have accused OPEC of manipulating oil prices and undermining the global economy through high energy costs.
The West has also accused OPEC of siding too much with Russia despite Western sanctions over Moscow’s invasion of Ukraine.
In response, OPEC insiders and watchers have said the West’s money-printing over the last decade has driven inflation and forced oil-producing nations to act to maintain the value of their main export.
Asian countries such as China and India have bought the lion’s share of Russian oil exports and refused to join Western sanctions on Russia.Reuters
