OPEC+ Considers Biggest Output Cut Since 2020

Oil prices jumped more than 3% in early Asian trade on Monday, as OPEC+ considers cutting output by more than 1 million barrels per day, for its biggest reduction since the pandemic, in a bid to support the market.
Brent crude futures rebounded $2.36, or 2.8%, to $87.50 a barrel, after settling down 0.6% on Friday. US West Texas Intermediate crude was up 2.9%, or $2.27, at $81.76 a barrel, after the previous session's loss of 2.1%, Money.usnews.com reported.
Oil prices have tumbled for four straight months since June, as Covid-19 lockdowns in top energy consumer China hurt demand, while rising interest rates and a surging US dollar weighed on global financial markets.
To support prices, the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC+, is considering an output cut of more than 1 million bpd ahead of Wednesday's meeting, OPEC+ sources told Reuters.
If agreed, it will be the group's second consecutive monthly cut after reducing output by 100,000 bpd last month.
But analysts expect the hit to supply from the cut will be markedly lower than the headline number, as many OPEC+ members are producing far less than their quotas.