<p>OPEC and its allies led by Russia on Monday agreed on a small oil production cut to bolster prices that have slid on fears of an economic slowdown.</p>.<p>The oil producers will reduce output by 100,000 barrels per day (bpd), amounting to only 0.1% of global demand, for October and also agreed they could meet any time to adjust production before the next scheduled meeting on Oct. 5.</p>.<p>The decision essentially maintains the status quo as OPEC has been observing wild fluctuations in oil prices, being pulled by multiple factors in both directions.</p>.<p>"OPEC+ is wary of protracted price volatility generated by weak macro sentiment, thin liquidity and renewed China lockdowns, as well as uncertainty over a potential U.S.–Iran deal and efforts to create a Russian oil price cap," said Matthew Holland at Energy Aspects.</p>.<p>Top OPEC producer Saudi Arabia last month flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.</p>.<p>Benchmark Brent crude oil has dropped to about $95 a barrel from $120 in June on fears of an economic slowdown and recession in the West.</p>.<p>It was also dragged down by a potential supply boost from Iranian crude returning to the market if Tehran is able to revive its 2015 nuclear deal with global powers.</p>.<p>Iran is expected to add 1 million bpd to supply, or 1% of global demand if sanctions are eased, though the prospects for a nuclear deal looked less clear on Friday.</p>.<p>Signals from the physical market, however, suggest that supply remains tight and many OPEC states are producing below targets while fresh Western sanctions are threatening Russian exports.</p>.<p>Russia has said it will stop supplying oil to countries that support the idea of capping the price of Russian energy supplies over its military conflict in Ukraine.</p>.<p>Russia's gas deliveries in Europe, meanwhile, have been cut further, which is likely to spark more price spikes.</p>.<p>"An output cut won't make them any friends at a time when the world is facing a cost-of-living crisis," said Oanda analyst Craig Erlam.</p>
<p>OPEC and its allies led by Russia on Monday agreed on a small oil production cut to bolster prices that have slid on fears of an economic slowdown.</p>.<p>The oil producers will reduce output by 100,000 barrels per day (bpd), amounting to only 0.1% of global demand, for October and also agreed they could meet any time to adjust production before the next scheduled meeting on Oct. 5.</p>.<p>The decision essentially maintains the status quo as OPEC has been observing wild fluctuations in oil prices, being pulled by multiple factors in both directions.</p>.<p>"OPEC+ is wary of protracted price volatility generated by weak macro sentiment, thin liquidity and renewed China lockdowns, as well as uncertainty over a potential U.S.–Iran deal and efforts to create a Russian oil price cap," said Matthew Holland at Energy Aspects.</p>.<p>Top OPEC producer Saudi Arabia last month flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.</p>.<p>Benchmark Brent crude oil has dropped to about $95 a barrel from $120 in June on fears of an economic slowdown and recession in the West.</p>.<p>It was also dragged down by a potential supply boost from Iranian crude returning to the market if Tehran is able to revive its 2015 nuclear deal with global powers.</p>.<p>Iran is expected to add 1 million bpd to supply, or 1% of global demand if sanctions are eased, though the prospects for a nuclear deal looked less clear on Friday.</p>.<p>Signals from the physical market, however, suggest that supply remains tight and many OPEC states are producing below targets while fresh Western sanctions are threatening Russian exports.</p>.<p>Russia has said it will stop supplying oil to countries that support the idea of capping the price of Russian energy supplies over its military conflict in Ukraine.</p>.<p>Russia's gas deliveries in Europe, meanwhile, have been cut further, which is likely to spark more price spikes.</p>.<p>"An output cut won't make them any friends at a time when the world is facing a cost-of-living crisis," said Oanda analyst Craig Erlam.</p>