Oil Jumps as OPEC+ Mulls Biggest Production Cut Since Pandemic

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(Bloomberg) — Oil rose in early Asian talks after delegates said OPEC+ was considering cutting output by more than 1 million barrels a day when the group meets this week to stem falling prices .

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West Texas Intermediate futures rose more than 3%, advancing for the first time in three sessions. Although delegates said a final decision on the size of the cuts would not be made until ministers meet in Vienna on Wednesday, a reduction of this magnitude would be the biggest since the pandemic.

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Crude oil capped its first quarterly decline in more than two years on Friday as worries about a global economic slowdown weighed on the outlook for energy demand. Banks, including JPMorgan Chase & Co., recently said OPEC+ may have to cut production by at least 500,000 barrels a day to stabilize prices.

A big output cut could draw criticism from the US and other big consumers, which have been battling energy-driven inflation and a slowdown. The Organization of the Petroleum Exporting Countries and its allies plan to hold their first face-to-face meeting in Vienna since March 2020.

Last week, China issued new quotas for fuel exports and crude imports as it sought to revive its economy, adding to bullish sentiment on the outlook for oil demand. The world’s biggest crude importer has been hit by Covid lockdowns and a real estate slump this year.

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