Oil Extends Rally as OPEC+ Mulls Largest Output Cut Since 2020

Delegates say group weighs cut of as much as 2 million barrels
G-7 Russian oil price cap to be announced sooner than expected

WATCH: Fereidun Fesharaki of FGE,discusses the possibility of OPEC+ cutting its production by 1 million barrels a day, what the cut will mean for prices and where he sees them heading.Source: Bloomberg

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By Ilena Peng

October 3, 2022 at 11:41 PM UTC

Updated on

October 4, 2022 at 7:47 PM UTC

This article is for subscribers only.

Oil surged after OPEC+ said it was considering cutting its production limit by as much as 2 million barrels a day, double what was previously anticipated.

West Texas Intermediate closed at a three-week high Tuesday after posting the biggest advance since July on Monday. OPEC’s decision could result in the cartel’s largest output reduction since the deep cuts at the outset of the pandemic, but the actual impact on global oil supply could be significantly smaller because several members already are pumping far below their quotas.