OPEC+, an oil producers group, is considering announcing a major cut in production when it meets Wednesday, according to a person familiar with the thinking of Saudi Arabia, the group’s de facto leader. Such a move, which analysts say is widely expected, would be a blow to the administration of U.S. President Joe Biden, after it lobbied the Saudis to increase output.
A cut would also mark a major turnaround in policy for OPEC+, which includes Russia. Since the group slashed oil production in early 2020 when demand collapsed because of the coronavirus pandemic, the producers have announced a series of steady monthly increases, although they have generally not met those goals.
Analysts say that the Saudis appear determined to bring oil prices up to about $90 a barrel. Oil prices, about $85 a barrel Friday for Brent crude, the international benchmark, have fallen by roughly one-fourth since their June high. After reports of OPEC+’s possible cut, prices edged higher in early trading Sunday night.