OPEC+ is likely to keep oil output quotas unchanged for October at a meeting on Monday, five OPEC+ sources said, although some sources would not rule out a small production cut to bolster prices that have slid due to fears of an economic slowdown.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, meets as demand faces headwinds and supply could be boosted by returning Iranian crude if Tehran secures a deal with world powers on its nuclear work.
Brent crude has dropped to about $93 a barrel from $120 in June on fears of an economic slowdown and recession in the West.
Iran is expected to add 1 million barrels per day to supply or 1 per cent of global demand if sanctions are eased although the prospect for securing a nuclear deal looked less clear on Friday.
Last month, top OPEC producer Saudi Arabia flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.
Signals from the physical market suggest supply remains tight, with many OPEC states producing below targets and fresh Western sanctions are threatening Russian exports.
Russia said last week it would stop supplying oil to countries which support the idea of capping the price of Russian energy supplies amid a military conflict in Ukraine.
It also further cut gas deliveries in Europe, which will likely face a new gas price spike.
Five OPEC+ sources said on Sunday the Sept. 5 meeting could roll over existing policies.
However, two sources out of five said the group could discuss a small cut of 100,000 barrels per day to bring production quotas back to August levels. One of the two sources said this would give the market “a sentiment of a symbolic cut.”
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