Analysts at the firm say that:
"A lack of action by the group (OPEC+) to remove barrels from the market is likely to spur further downside pressure on oil prices. The group has to announce a production cut of at least 0.5 million barrels per day over the coming days."
Adding that only such a move can break the negative momentum in oil in the short-run while in order to provide a stronger floor, Saudi Arabia would need to voluntarily make extra cuts.
As for what is dragging oil prices lower, the firm says that recession fears leading to weak demand and a better supplied market are two main reasons - adding to the broader risk-off environment caused by aggressive monetary policy tightening, particularly the Fed.
For some context, OPEC+ will next meet on 5 October so keep that penciled in your calendars.
