The logo of the Organization of the Petroleum Exporting Countries (OPEC) is shown at its headquarters in Vienna, Austria August 21, 2015. REUTERS/Heinz-Peter Bader/File Photo
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- OPEC+ meets on Monday to set policy
- The Iran nuclear deal could boost oil supplies
- Russia’s gas supplies to Europe were further reduced
- Brent crude falls to $95 from $120 in June
LONDON, Sept 4 (Reuters) – OPEC+ is likely to keep oil production quotas unchanged for October at a meeting on Monday, six OPEC+ sources said, although some sources would not rule out a small production cut to bolster prices that have fallen due to fears of an economic slowdown.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+, are expected to review existing policies, six OPEC+ sources said on Sunday and Monday.
However, three of the sources said the producer group could also discuss a small cut of 100,000 barrels per day (bpd).
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Monday’s OPEC+ meeting is set against a complex backdrop that includes a potential boost to Iranian crude supply returning to the market if Tehran is able to revive its 2015 nuclear deal with world powers.
Russia, for its part, has said it will stop supplying oil to countries that support the idea of capping the price of Russian energy supplies over its military conflict in Ukraine.
Meanwhile, its gas deliveries to Europe have been further cut, which is likely to lead to further price hikes. Read more
Brent crude has fallen to around $95 a barrel from $120 in June amid fears of an economic slowdown and recession in the West.
Iran is expected to add 1 million barrels a day to supply or 1 percent of global demand if sanctions are eased, although the outlook for a nuclear deal looked less clear on Friday. Read more
Last month, OPEC’s top producer, Saudi Arabia, signaled the possibility of production cuts to address what it sees as an exaggerated drop in oil prices. Read more
Signs in the physical market, however, suggest that supply remains tight and that many OPEC states are producing below targets, while fresh Western sanctions threaten Russian exports.
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Additional reporting by Rowena Edwards and Olesya Astakhova Writing by Dmitry Zhdannikov Editing by David Goodman
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