After a slight cut of 100000 barrels last month, OPEC+ may cut production by a larger margin at this month's meeting in response to a sustained pullback in oil prices.

The OPEC+, made up of oil-producing countries, will consider cutting production by more than 1 million barrels a day when it meets in Vienna on Wednesday, according to media reports.Delegates said they would not make a final decision on the scale of production cuts before ministers meet.

Brent crude soared to more than $125 a barrel after the conflict between Russia and Ukraine escalated in February. Since then, oil prices have fallen to about $85 as concerns about global economic growth have intensified and the dollar has strengthened.

Banks such as JPMorgan Chase & Co say OPEC+ may need to reduce production by at least 500000 barrels a day to stabilize oil prices. Helima Croft, chief commodities strategist at Royal Bank of Canada Capital Markets, believes that OPEC may choose to decline twice as much.

At the previous September meeting, OPEC+ said it would cut production by 100000 b / d from October, bringing supply back to August levels, overturning the September increase announced by OPEC+ the previous month and the first cut since early 2021.

OPEC+ 's move is aimed at stabilising oil prices at a time when concerns about economic weakness and slowing demand escalate. OPEC+ 's move was unexpected, but because of its small range, the market characterized it as a "symbolic" cut in production. The Saudi side later said that it would maintain the initiative of the oil production policy in the future.

Bill Farren-Price, head of macro oil and gas research at Enverus, previously analyzed that although the scale of OPEC+ 's production reduction in September was limited, it sent an important signal to the market.That is, the organization returns to price observation mode (continuing to cut production at any time) to deter short sellers and stabilize oil prices at around $100.