The OPEC+ oil cartel is expected to agree on another small production increase Monday, though it could opt to cut output to lift prices that have tumbled over recession fears.
The 13 members of the Organization of the Petroleum Exporting Countries (OPEC) cartel, led by Saudi Arabia, and their 10 Russian-led allies will hold a regular meeting to adjust their quotas for October.
Oil prices soared to almost $140 a barrel in March after Russia invaded Ukraine, but they have since receded amid recession fears, Covid lockdowns in major consumer China and a possible Iran nuclear deal.
The main international benchmark, Brent, and the US contract, WTI, have since fallen under the $100 mark, fuelling speculation that OPEC+ could cut output to prop up prices.
"The group is expected to leave output targets unchanged but it's likely that a cut will be at least discussed which, if followed through on, would create more volatility and uncertainty at a time of considerable unease," said Craig Erlam, market analyst at OANDA trading platform.
"An output cut won't make them any friends at a time when the world is facing a cost-of-living crisis already and the group has failed to keep up with demand this year," said Erlam.
At its last meeting, OPEC+ agreed to a small increase of 100,000
barrels per day for September -- six times lower than its previous decisions.
