Reduced global demand may offset any supply cut by OPEC and its allies.
Even if Saudi Arabia and other leading oil-exporting countries cut their production targets this week, spurning U.S. efforts to keep supplies flowing, the move may barely register in global oil prices.
An output cut by Saudi Arabia and its allies would reinforce the growing perception that Crown Prince Mohammed bin Salman of Saudi Arabia and President Vladimir V. Putin of Russia are working closely together to manage oil markets. That is not what President Biden had in mind when he visited Saudi Arabia in July, shared a fist bump with Prince Mohammed and called for more production.
But the cut being considered — up to a million barrels a day by OPEC Plus — may amount to little more than symbolism, given countervailing forces in the global oil market.
Global inventories and spare capacity are considered to be well below the