Russia will likely propose a cut of 1 million barrels per day in production output at the next OPEC+ meeting, according to a new report from Reuters.
The report came on the heels of comments at Monday’s APPEC’s oil conference noting that global oil stocks are set to increase next year as demand weakens and the dollar rises, and that this would require OPEC to cut production output in order to stabilize the price.
Gary Ross, chief executive of Black Gold Investors, noted at the meeting OPEC would have to institute a cut of between 500,000 and 1 million barrels per day if they wanted to maintain the price of Brent crude over $90 per barrel.
Now comes word Russia itself may request a million barrel per day cut, and its words will carry significant weight with the Cartel, given the nation is one of the two largest members of the OPEC+ group.
The next OPEC meeting is scheduled for October 5th, and it will determine the target output for November. In November, the US will also release another batch from the Strategic Petroleum Reserve, which has aided in lowering prices.
At the last meeting, OPEC+ had cut its production target by a modest 100,000 bpd, which analysts have seen as signaling a willingness to act to support prices in the $85-$90 price range.
Brent crude was up $1.47 Tuesday, to $85.53 per barrel, off the mysterious leaks, possibly due to sabotage, on the Nord Stream 1 and Nord Stream 2 pipelines, which make it unlikely there will be any gas delivered to Europe from Russia through either pipeline.
