Home / Economy / Global oil prices surge 2% as Opec mulls sharp output cut

Global oil prices surge 2% as Opec mulls sharp output cut

OPEC+, the alliance of Organization of the Petroleum Exporting Countries (Opec) and other major oil producing countries, including Russia, is scheduled to meet on Wednesday. (File Photo: Reuters)Premium
OPEC+, the alliance of Organization of the Petroleum Exporting Countries (Opec) and other major oil producing countries, including Russia, is scheduled to meet on Wednesday. (File Photo: Reuters)

Opec’s September output rose to its highest since 2020, surpassing a pledged hike for the month, Iyer observed. Opec had pumped 29.81 million barrels per day in September, up 210,000 bpd from August and the highest since April 2020.

NEW DELHI: International oil prices jumped more than 2% in early deals on Monday as OPEC and allies consider an output cut of 1 million barrels per day. If implemented, it would be the sharpest production cut since the start of the pandemic.

Around 1040am, the December Brent contract on the Intercontinental Exchange was at $87.29 per barrel, up 2.53% from previous close. The November contract of West Texas Intermediate (WTI) on the NYMEX rose 2.63% to $81.58 per barrel.

Oil prices have largely declined since June due to prospects of a global recession amid weakening demand and rising interest rates.

OPEC+, the alliance of Organization of the Petroleum Exporting Countries (Opec) and other major oil producing countries, including Russia, is scheduled to meet on Wednesday.

Sriram Iyer, senior research analyst at Reliance Securities, noted that prices rose on the possibility that OPEC+ will agree to cut crude output when it meets on 5 October.

Prices had dipped Friday as Opec’s September output rose to its highest since 2020, surpassing a pledged hike for the month, Iyer observed. Opec had pumped 29.81 million barrels per day in September, up 210,000 bpd from August and the highest since April 2020.

Last month, Opec announced that the cartel and its allies would slash oil production targets for October by 100,000 barrels per day after having agreed to increase production by the same quantum in September.

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