The group of oil producers known as OPEC+, including Saudi Arabia and Russia, are likely to agree to cut production at a meeting scheduled for Thursday as long as the United States joins in cutting output, three OPEC+ sources told Reuters.
OPEC+ is working on a deal to cut oil production by about 10 percent of world supply, or 10 million barrels per day (bpd), in what member states expect to be an unprecedented global effort.
A previous production-cut deal ended last month after Russia and Saudi Arabia were unable to come to an agreement to curb output further as the coronavirus pandemic destroyed demand.
Now, with fuel demand falling by roughly 30 percent, members of the Organization of the Petroleum Exporting Countries and allies including Russia are looking to rein in supply. However, they want others, like the United States, to join.
Oil prices fell on Monday, after Saudi Arabia and Russia delayed the meeting to discuss output cuts that could help reduce global oversupply as the coronavirus pandemic pummels demand.
Brent crude fell more than $3 when Asian markets opened but recovered some ground with traders hopeful that a deal between the top producers.