Countries that ready to cut much oil production


October 5, Fineko/ Saudi Arabia, Russia and other producers are ready to announce a significant reduction in oil production at the OPEC+ meeting in Vienna on Wednesday, ABC.AZ reports, referring to the Financial Times.

The level of production cut has yet to be agreed, but Riyadh and Moscow allegedly insist on reduction of 1-2 million b/d or more.

It is not ruled out that this measure may be implemented by the parties in stages, over several months, and lead to adoption of retaliatory steps by the U.S.

The Financial Times cites the opinion of one of the sources, according to which the countries participating in the OPEC+ agreement fear that the price ceiling, the introduction of which is being discussed in relation to Russian oil, may subsequently become "a precedent for wider application to other producers".

The OPEC+ member countries’ ministers will hold a regular meeting on Wednesday to determine the further plan for oil production. For the first time since March 2020, the alliance members will gather in person at the OPEC headquarters in Vienna.