OPEC+ to halt oil’s drop?

Oil prices have drawn some respite from the US dollar’s pullback this week, even though global recession risks still weigh on the commodity’s outlook.

Although Brent is now trading back closer to the psychological $90/bbl mark, such relief is of mere consolation when stacked within the downtrend that’s been in place since June.

Oil’s first weekly gain in five weeks isn’t enough to prevent its first quarterly decline in more than two years.

Oil prices should find more support over the near-term should OPEC+ officially decide at next week’s meeting to meaningfully lower its output.

Recall that the alliance had earlier this month signaled its intentions to stabilize oil prices with a token 100k bpd supply reduction for October.

OPEC+ has to forcefully demonstrate its desire to restore prices to market fundamentals in order to support oil benchmarks, amid the wave of demand-destroying policy tightening by central banks around the world.