The Opec+ group of oil producers has agreed to cut its October output by 100,000 barrels per day reverting to the output level of August to support prices, with the slowing global economy posing demand headwinds and a potential Iran nuclear deal bringing more crude to the market.
The decision to cut output quotas was taken during an online meeting on Monday. The group will hold its next meeting on October 5 to gauge market dynamics, it said in a statement.
Last month, Opec+ agreed to increase output by 100,000 barrels per day for September, as it recalibrated production amid continued price volatility, fears of a recession and supply constraints caused by the Russia-Ukraine conflict.
"In view of current oil market fundamentals and the consensus on its outlook", the group decided to "revert to the production level of August 2022 for Opec and non-Opec participating countries for the month of October 2022 ... noting that the upward adjustment of 0.1 million bpd to the production level was intended only for the month of September 2022", the statement said.
The alliance requested its chairman to consider calling for an Opec and non-Opec ministerial meeting "anytime to address market developments, if necessary".
ZZ/PR