The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3, 2022. (LISA LEUTNER / AP)

SINGAPORE – Oil prices jumped more than 3 percent in early Asian trade on Monday, as OPEC+ considers cutting output by more than 1 million barrels a day for its biggest reduction since the pandemic, in a bid to support the market.

Brent crude futures rebounded US$2.51, or 3 percent, to US$87.65 a barrel by 0206 GMT, after settling down 0.6 percent on Friday. US West Texas Intermediate crude was also up 3 percent, or US$2.39, at US$81.88 a barrel, after the previous session's loss of 2.1 percent.

Oil prices have tumbled for four straight months since June, while rising interest rates and a surging US dollar weighed on global financial markets.

READ MORE: OPEC to slightly raise oil output in September

To support prices, the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, is considering an output cut of more than 1 million bpd ahead of Wednesday's meeting, OPEC+ sources told Reuters.

However, OPEC+ missed its production targets by nearly 3 million bpd in July, two sources from the producer group said, as sanctions on some members and low investment by others stymied its ability to raise output

If agreed, this will be the group's second consecutive monthly cut after reducing output by 100,000 bpd last month.

However, OPEC+ missed its production targets by nearly 3 million bpd in July, two sources from the producer group said, as sanctions on some members and low investment by others stymied its ability to raise output.

"Anything less than 500,000 barrels a day would be shrugged off by the market. Therefore, we see a significant chance of a cut as large as 1 million barrels a day," ANZ analysts said in a note.

ALSO READ: OPEC+ brings forward oil output rises as Biden's Saudi visit looms

While prompt Brent prices could strengthen further in the immediate short term, concerns over a global recession are likely to limit the upside, consultancy FGE said.

"If OPEC+ does decide to cut output in the near term, the resultant increase in OPEC+ spare capacity will likely put more downward pressure on long-dated prices," it said in a note on Friday.

READ MORE: Nigeria's Barkindo, who led OPEC in turbulent times, dies