Opec Supply Cuts

The seven core ​members of Opec+ - ​Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman - have ​been increasing monthly production quotas for most of this year

OPEC cuts 2022 demand growth to 2.64 million bpd from 3.1 mn bpd, but still sees demand topping pre-pandemic level in 2023; OPEC September output rises 146,000 bpd, led by Saudi

Prices also rose on US government data that showed crude and fuel inventories fell last week

The potential OPEC+ cut could spur a recovery in oil prices that have dropped to about $90 from $120 three months ago due to fears of a global economic recession, rising US rates and a stronger USD

Despite one of the tightest markets in recorded history, Goldman said the cut could be justified by the 40% decline in prices from their June peak and enabled by the lack of supply elasticity

Oil prices climbed on Friday on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5, but the benchmarks were still on track to post their worst weekly drop

Key members of OPEC are wary that strains in the OPEC+ alliance could reemerge with Biden as US President, close sources said and would miss Trump who helped bring about a record oil output cut

An extension to cuts was contingent on high compliance, three Opec sources told Reuters

US production has soared by almost 10% this year, driven largely by shale drillers

Crude's cascade into bear market territory could be down to algorithmic and technical selling

Opec's cuts helped push oil back above $50 a barrel this year, giving a fiscal boost to producers

Global oil glut has depressed markets for almost three years