OPEC+ keeps policy steady amid weak economy, Russian oil cap

  • No talk of Russian price cap – delegates
  • Weak economy weighs on oil prices
  • The next meeting will be held in February. 1 and 3-4 June

LONDON/DUBAI, Dec 4 (Reuters) – OPEC+ agreed to stick to its oil production target at a meeting on Sunday as oil markets struggle to assess the impact of China’s slowing economy on demand and the G7’s impact on Russian oil. The effect of a price ceiling on supply.

The decision came two days after the Group of Seven (G7) countries agreed to cap prices on Russian oil.

OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, agreed in October to cut production by 2 million barrels per day, or about 2 percent of world production, angering the U.S. and other Western countries to boost demand from November to 2023. end of the year.

Washington has accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow’s war in Ukraine.

OPEC+ argues that it has already cut production because of the weak economic outlook. Oil prices have fallen since October amid slowing growth in China and the world and rising interest rates, fueling speculation the group could cut production again.

But on Sunday, the group of oil producers decided to keep policy unchanged. Its key ministers will next meet on 8 February. 1 supervisory committee, while a plenary meeting is scheduled for 3-4 June.

The G7 nations and Australia agreed on Friday to impose a $60 price cap on Russian seaborne crude, a move aimed at depriving President Vladimir Putin of income while keeping Russian oil flowing to global markets.

Moscow said it would not sell its oil under the cap and was working out how to respond.

Many analysts and OPEC ministers said the price cap was confusing and potentially inefficient as Moscow has been selling most of its oil to countries such as China and India that refuse to condemn the war in Ukraine.

Neither Saturday’s OPEC meeting nor Sunday’s OPEC+ meeting discussed Russia’s price cap, the sources said.

Russian Deputy Prime Minister Alexander Novak said on Sunday that Russia would rather cut output than supply oil under a price cap, saying the cap could affect other producers.

Several OPEC+ members expressed frustration with the cap, sources told Reuters, saying the West could end up using anti-market measures against any oil producer.

The United States said the measure was not aimed at OPEC.

JPMorgan said on Friday that OPEC+ is likely to review output for the new year based on the latest data on demand trends in China and consumer compliance with caps on Russian crude output and prices for tanker flows.

Reporting by Maha el Dahan and Rowena Edwards, Editing by Kirsten Donovan

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