The Organization of Petroleum Exporting Countries and its partners, known as OPEC+, are thought to be reducing production, which led to a 2 percent increase in oil prices on Friday.
In light of plummeting oil prices and dwindling demand, the OPEC+ summit will take on on September 5—despite Saudi Arabia, the world's top oil producer, calling for supply restraint.
Nigeria, one of Africa's largest producers, has supported the Saudi call for output reductions.
The reduction, according to Timipre Sylva, minister of state for petroleum resources, will guarantee a steady oil market.
The market supply increased by 100,000 bpd last month thanks to the oil cartel.
The organisation is anticipated to maintain its output targets, according to Warren Patterson, head of commodity research at ING.
“Their own numbers show a tighter-than-expected market, and they would probably also want some more clarity on Iranian supply before making any big changes to output policy,” Patterson told Reuters.
The G7 countries are preparing for a potential price cap on Russian oil shipments, while the joint technical committee (JTC) of OPEC had stated it expected a market shortfall in its base scenario for 2023.
The US, UK, France, Germany, Italy, Canada, and Japan make up the G7.
In order to reduce Moscow's income and the rise in crude prices, G7 finance ministers are anticipated to finalise measures to impose a price restriction on Russian oil later today.
The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+