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| Major oil producers led by Saudi Arabia and Russia will continue to cut production. (Customs Today) |
There are growing signs that major oil producers – led by Saudi Arabia and Russia – are considering further production cuts when they meet on June 4 in an effort to stem the price slump.
Analysts had expected OPEC+ producers to maintain their current policy, but signs emerged on June 3 that maintaining this policy may not be enough to stabilize the oil market.
In April, some OPEC+ members agreed to voluntarily cut production by more than 1 million barrels per day, a surprise move that briefly supported prices but failed to bring a lasting recovery. Oil producers are grappling with plunging prices and high market volatility amid the ongoing Russia-Ukraine conflict, which has affected economies around the world.
Most delegations remain tight-lipped or refuse to comment on possible policy decisions as they travel to Vienna for meetings.
Analysts have been divided on whether heavyweights Riyadh and Moscow will keep the group on track with its current output policy or continue to cut output.
According to a source familiar with the matter, the parties are discussing cutting production by about 700,000 barrels per day to 1 million barrels per day.
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