Russia doesn't want OPEC+ to cut oil output as it fears it'll lose leverage with its Asian buyers: report

According to a Wall Street Journal report, Russia is opposed to an oil production cut because it wants to make sure it has an advantage in talks with Asian buyers.

A meeting of the Organization of the Petroleum Exporting Countries and its allies will take place on Monday. The idea of a supply cut was raised by Saudi Arabia last month.

The WSJ reported Monday that people familiar with the matter said that Moscow is worried that a reduction in production by the group could be seen as a sign of oversupply. After Europe and the US banned Russian oil supplies, Asian buyers have picked up the slack.

Falling demand and a surplus of crude would usually cause oil prices to go down. Sources told the WSJ that the group projected global oil supply would be about a million barrels a day higher than demand this year and next.

At the meeting today, analysts think that crude output will stay at its current level.

According to the International Energy Agency, 45% of Russia's federal budget was spent on oil and gas last year.

Despite Western sanctions, its oil exports have remained strong. The US is said to be one of the countries that imports Russia supply via India.

Russia's current-account surplus hit $167 billion in the first seven months of the year, thanks to oil and gas sales. It was triple what it was last year.

The G7 group of advanced economies has agreed to back a price cap on Russian oil and is now urging India to do the same.

At last check Monday, the price ofBrent crude was up 2.74% at $95.58 a barrel, while the price ofWTI crude was up 2.5% at $89.01.