Russia Suggests OPEC+ Output Cut

Russia is likely to propose that OPEC+ reduce oil output by around 1 million barrels per day at its next meeting in October, a source familiar with the Russian viewpoint said.
The meeting will take place on Oct. 5 against the backdrop of falling oil prices and months of severe market volatility that prompted another top OPEC+ producer, Saudi Arabia, to say the group could cut production, Oilprice.com reported.
Four OPEC+ sources told Reuters that discussions among ministers have not yet begun ahead of next week's meeting.
OPEC+, which combines OPEC countries and allies such as Russia, has refused to raise output to lower oil prices despite pressure from major consumers, including the United States, to help the global economy.
Prices have, nevertheless, fallen sharply this month due to fears about the global economy and a rally in the US dollar after the Federal Reserves raised rates.
Brent crude oil prices, which were already trading higher on Tuesday due to US Gulf supply cuts, rose further on the news of the potential Russian proposal, with the contract rising nearly 4% to a session high of $87.15 a barrel.
The impact of any OPEC+ agreement to cut output is likely to be mitigated by the inability of many members of the group to produce at their agreed targets.