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OPEC to propose cut in crude output

The Organisation of Petroleum Exporting Countries(OPEC) says it could most likely cut oil output by more than one million barrels a day when delegates meet on Wednesday for the first time in more than two years.

This is coming up as the global economy is slowing fast in the face of rapidly tightening monetary policy.

Although a final decision won’t be made until oil ministers meet to discuss these issues.

Brent crude soared above $125 a barrel following Russia’s invasion of Ukraine in February but has since dropped, tempering the spectacular windfall enjoyed by Saudi Arabia, Russia, the United Arab Emirates, and other major producers.

A massive cut risks adding another shock to the global economy, which is already battling energy-driven inflation.

The US and other countries have called for more production, with President Joe Biden visiting Saudi Arabia earlier this year in search of a new oil deal and ultimately lower pump prices for Americans ahead of mid-term elections in November.

OPEC and its partners have been meeting online on a monthly basis and were not expected to arrange an in-person gathering until at least the end of this year.

Writing by Tersoo Nicholas; Editing by Tina Oyinsan