LONDON/DUBAI: OPEC+ agreed to stick to its oil production targets at a meeting on Sunday as oil markets weighed on demand from a slowdown in the Chinese economy and the impact of the G7 price cap on Russian oil on supply. Struggled to review.
The decision comes two days after the Group of Seven (G7) countries agreed on a price cap for Russian oil.
OPEC+, made up of the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, angered the United States and other Western countries in October when it agreed to cut output by 2 million barrels per day (bpd). What, that’s about 2 percent of the world. Demand, from November to the end of 2023.
Washington has accused the group and one of its leaders, Saudi Arabia, of supporting Russia despite Moscow’s war in Ukraine.
OPEC+ argued that it had cut production due to a weak economic outlook. Oil prices have fallen since October due to sluggish sugar and higher global growth and interest rates, fueling market speculation that the group could cut output again.
But on Sunday, the oil producer group decided to maintain the policy. Its key ministers will next meet on February 1 for the monitoring committee while the full meeting is scheduled for June 3-4.
On Friday, G7 nations and Australia agreed to a $60-a-barrel price cap on Russian offshore crude in a move to deprive President Vladimir Putin of tariffs while keeping Russian oil flowing on global markets.
Moscow said it would not sell its oil under the cap and was analyzing how to respond.
Many analysts and OPEC ministers have said the price ceiling is ambiguous and perhaps ineffective because Moscow is selling most of its oil to countries such as China and India, which have refused to condemn the war in Ukraine. Is.
Neither the OPEC meeting on Saturday nor the OPEC+ meeting on Sunday discussed the Russian price ceiling, the sources said.
Russian Deputy Prime Minister Alexander Novak said on Sunday that Russia would cut production rather than supply oil under the price cap, adding that other producers could be affected by the cap.
Sources told JEE News that several OPEC+ members expressed dismay at the cap, saying the anti-market measure could ultimately be used by the West against any producer.
The US said the move was not aimed at OPEC.
JPMorgan said on Friday that OPEC+ could review output in the new year based on fresh data on Chinese demand trends and consumer compliance with Russia’s crude output and price cap on tanker flows. .
