OPEC+ is weighing the change against a smaller output cut, the sources said

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria on August 21, 2015. REUTERS/Heinz-Peter Bader/File Photo

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  • OPEC+ meets on Monday to set policy
  • Iran nuclear deal will boost oil supply
  • Russia’s gas supplies to Europe were further cut
  • Brent crude fell from $120 to $95 in June

LONDON, Sept 4 (Reuters) – OPEC+ is likely to keep oil production quotas for October unchanged at a meeting on Monday, six OPEC+ sources said, although some sources did not rule out a small production cut to boost prices. An economic recession.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, are expected to change existing policies, six OPEC+ sources said on Sunday and Monday.

However, three sources said the producer group may discuss a smaller cut of 100,000 barrels per day (bpd).

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Monday’s OPEC+ meeting is set against a complicated backdrop that includes the possibility of Iranian crude returning to the market if Tehran is able to renew a 2015 nuclear deal with world powers.

Meanwhile, Russia has said it will cut oil supplies to countries that support the idea of ​​curbing the price of Russian energy supplies because of the military conflict in Ukraine.

Meanwhile, Russia’s gas supply to Europe has been further cut, which will further drive up prices. read more

Brent crude fell from $120 a barrel to around $95 a barrel in June due to economic slowdown and recession fears in the West.

While the prospect of a nuclear deal on Friday appears slim, if sanctions are eased, Iran is expected to add 1 million bpd to supply, or 1% of global demand. read more

Top OPEC producer Saudi Arabia last month flagged the possibility of production cuts to address what it sees as an exaggerated fall in oil prices. read more

“OPEC+ is wary of prolonged price volatility created by weak macro sentiment, thin liquidity and renewed China lockdowns, as well as uncertainty over a potential US-Iran deal and efforts to create a Russian oil price ceiling,” said Matthew Holland at Energy Aspects.

However, signals from the physical market suggest supply is tight and many OPEC countries are producing below targets, with new Western sanctions threatening Russian exports.

“Cutting a release at a time when the world is facing a cost of living crisis won’t make them friends,” … a more sensible option might be to hold this month and revisit in the future when there is more clarity. ,” said Onda analyst Craig Erlam.

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Additional reporting by Rowena Edwards and Olesya Astakova Writing by Dmitry Zhdanikov Editing by David Goodman

Our Standards: Thomson Reuters Trust Principles.

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