Brent Crude Oil Holds Up As OPEC+ Mulls Large Supply Cut

brent oil prices

Brent Crude Oil :  held near $91 per barrel on Wednesday after rallying 8% in the previous two sessions, as investors braced for an OPEC+ meeting where it is expected to announce a large supply cut to support oil prices.

The cartel is set to meet in Vienna on Wednesday and is reportedly considering reducing output by as much as 2 million barrels per day, which is double the volume previously flagged and would be the biggest production cut since the height of Covid-19 lockdowns.

The looming EU ban on Russian crude set to take effect in December and a US-led plan to impose a price cap on Russian oil also clouded the outlook, as President Vladimir Putin threatened to respond by withholding supply.

This week’s gains followed four straight months of losses as tightening monetary conditions, recession fears and a strong dollar combined to pressure commodity markets. Doubts about the effectiveness of OPEC+ supply cuts also persisted as the group already struggled to meet output targets.