OPEC+ Considering Production Cuts of More Than 1 Million Barrels

The OPEC+ group of oil producers will consider cutting output by more than 1 million barrels a day when it meets in Vienna on Wednesday, delegates said.

A larger cut than expected from OPEC+, would reflect the extent of concerns that the global economy is slowing rapidly in the face of rapidly tightening monetary policy. A stronger dollar has also put pressure on prices. Delegates said a final decision on the size of the cuts would not be made until ministers meet. Brent crude surged above $125 a barrel after Russia invaded Ukraine in February. It has since fallen as low as $85, easing the extraordinary windfall achieved by Saudi Arabia, Russia, the United Arab Emirates and other members of the coalition. The 23-nation alliance is scheduled to meet at its headquarters in Vienna on Wednesday, OPEC's secretariat said on Saturday. The group, which meets monthly over the internet, was not expected to hold a face-to-face meeting until at least the end of this year. Banks such as JPMorgan Chase & Co. said OPEC+ may need to cut output by at least 500,000 barrels a day to stabilize prices. Helima Croft, chief commodity strategist at RBC Capital Markets LLC, said the group might opt for a cut twice that size. "I suspect they may not personally want to go for a small move," Croft said. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!