Recession risks a key factor in Opec+ discussions: UAE

The impact of a potential recession on oil market fundamentals will be one of the issues dominating discussions when Opec+ ministers meet in Vienna today to decide on production targets for next month, according to UAE energy minister Suhail al-Mazrouei.

"Recession is one of the fundamental factors that we are all looking at," al-Mazrouei said. "We look at recession... we look at the supply and demand, and we all know that the recession is affecting the supply and demand. What is the decision? You have to wait."

Concerns about the effect of an inflation-driven economic slowdown on global oil demand are looming large over the ministerial meeting.

Delegates say the group will examine proposals to reduce production quotas by as much as 2mn b/d in November. If agreed, this would be the biggest cut since the group reduced quotas by 9.7mn b/d at the start of the Covid crisis in 2020.

By Ruxandra Iordache, Nader Itayim, Bachar Halabi and James Keates