OPEC+ cuts might affect the market, expert says

Shafaq News / OPEC+ looks set for deep cuts to its oil output targets when it meets on Wednesday, curbing supply in an already tight market despite pressure from the United States and others to pump more.

The potential OPEC+ cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago due to fears of a global economic recession, rising U.S. interest rates and a stronger dollar.

OPEC+, which includes Saudi Arabia and Russia, is working on cuts of 1-2 million barrels per day, sources told Reuters, with several sources saying cuts could be closer to 2 million.

The United States is pushing OPEC not to proceed with the cuts arguing that fundamentals don't support them, a source familiar with the matter said.

Oil expert Mohammed al-Hasani said in an interview with Shafaq News agency that OPEC's decision must influence the international market, since most country members did not reach the expected production rate.

He added that the expected recession in Europe might prompt OPEC to tighten its production more.