OPEC and its allies known as OPEC+ will meet on Sunday to assess the oil market situation that recently fell toward $70 per barrel amid fear of dwindling demand and global economic growth. Still, the group of oil producers is unlikely to cut output, according to the report by Reuters.
Citing four sources from OPEC+, Reuters reported that the group is unlikely to deepen supply cuts at the meeting despite oil prices falling toward $70 a barrel.
The group surprised the market in April with a decision to cut output by 1.16 million barrels per day, which was on top of a two million barrels per day (bpd) cut agreed in early October.
HSBC wrote in a note that it did not expect OPEC+ to cut output this time, but may do so later if oil prices remain under $80 in the second half of this year. Goldman Sachs also has the same view.
