MOSCOW/LONDON, Nov 17 (Reuters) - The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to discuss the possibility of implementing additional oil supply cuts at their upcoming meeting on November 26. This comes as oil prices have plummeted by nearly 20 percent since late September, reaching a four-month low of around $79 per barrel for Brent crude.

Sources within OPEC+ revealed to Reuters that the group will analyze if further cuts are necessary to address concerns about diminishing demand and a potential surplus in the oil market next year. Saudi Arabia, Russia, and other OPEC+ members have already committed to reducing total oil output by 5.16 million barrels per day (bpd), equivalent to approximately 5% of global daily demand. These cuts include 3.66 million bpd by OPEC+ and additional voluntary reductions by Saudi Arabia and Russia.

An anonymous OPEC+ source stated that the existing production curbs might not be sufficient, prompting the group to consider implementing more extensive measures. Two other sources also suggested that deeper cuts could be discussed during the meeting.

The source remarked, "It is not pleasant to see that market volatility is greater ahead of the next meeting while fundamentals overall remain solid. Ministers are likely to express some thoughts on what to do more, to secure a stable trend."

During their last meeting in June, OPEC+ members had already agreed on a plan to limit supplies by 3.66 million bpd until 2024. However, with the recent downturn in prices, some sources believe that further actions may be necessary to stabilize the market.

It remains uncertain whether additional cuts will be agreed upon, as two OPEC+ sources commented that it is too early to determine whether further reductions will be on the table. However, another source expressed skepticism, stating, "Wait and see."

OPEC+ has emphasized the importance of strong compliance with the agreed cuts, aiming to ensure that all members bear the burden of reduced oil production. The organization does not have a specific target for oil prices but relies heavily on oil as a primary source of government income.

Analysts have raised concerns about the potential economic contraction in Saudi Arabia due to the extension of its voluntary production cut. However, Energy Aspects and other experts anticipate that Saudi Arabia will continue with the voluntary cut at least until the first quarter of 2024.

As the OPEC+ meeting approaches, the group will need to carefully consider market dynamics and the potential impact of further production adjustments to achieve a stable and balanced oil market. The decision-making process will focus on securing long-term stability while meeting the varying needs and interests of its member countries.