OPEC+ begins meetings that may agree further output cuts

OPEC and its allies began two days of meetings that may culminate in further production cuts of as much as 1 million barrels per day

OPEC and its allies began two days of meetings on June 3 that may culminate in further production cuts of as much as 1 million barrels per day, OPEC+ sources told Reuters, as the group faces flagging oil prices and a looming supply glut.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world's crude, meaning its policy decisions can have a major impact on oil prices.

Three OPEC+ sources told Reuters on Friday that cuts were being discussed among options for Sunday's session, when OPEC+ ministers gather at 2 p.m. (1200 GMT) in Vienna.

OPEC held a separate brief meeting on Saturday but ministers made no comment on possible policy decisions afterwards.

The sources said cuts could amount to 1 million bpd on top of existing cuts of 2 million bpd and voluntary cuts of 1.6 million bpd, announced in a surprise move in April and which took effect in May.

If approved, this would take the total volume of reductions to 4.66 million bpd, or around 4.5% of global demand.

"This number is premature, we didn’t go into these things (yet)," Iraq's oil minister Hayan Abdel-Ghani said prior to the meetings, when asked about a possible cut of 1 million bpd.