- There are no discussions about the Russian price limit – delegates
- Oil prices have come under pressure from the weak economy
- The next meetings will take place on February 1 and from June 3 to 4
LONDON/DUBAI, Dec 4 (Reuters) – OPEC+ agreed to meet its oil production targets at a meeting on Sunday as oil markets struggled to assess the impact of a slowdown in the Chinese economy on demand and a G7 price cap on Russian oil supply.
The decision comes two days after the Group of Seven (G7) nations agreed on a price cap for Russian oil.
OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, angered the United States and other Western nations in October when it agreed to cut production by 2 million barrels per day (bpd ), around 2% of the world. demand, from November until the end of 2023.
Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow’s war in Ukraine.
OPEC+ argued that it had cut production due to a weaker economic outlook. Oil prices have fallen since October on slower Chinese and global growth and higher interest rates, prompting market speculation that the group could cut output again.
But on Sunday the group of oil producers decided to keep the policy unchanged. Its key ministers will meet on February 1 for a follow-up committee, while a 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 oil to deprive President Vladimir Putin of revenue while keeping Russian oil flowing on world markets.
Moscow said it would not sell its oil under the cap and was considering how to respond.
Many OPEC analysts and ministers have said the price cap is confusing and likely inefficient, as Moscow has been selling most of its oil to countries such as China and India, which have refused to condemn the war in Ukraine.
Neither an OPEC meeting on Saturday nor the OPEC+ meeting on Sunday discussed the Russian price cap, sources said.
Russian Deputy Prime Minister Alexander Novak said on Sunday that Russia would rather cut output than supply oil below the price cap and said the cap could affect other producers.
Sources have told Reuters that several OPEC+ members have expressed frustration over the cap, saying the anti-market measure could be used by the West against any producer.
The United States said the measure was not aimed at OPEC.
JP Morgan said on Friday that OPEC+ could revise output in the new year based on new data on Chinese demand trends and consumer compliance with crude output price caps and vessel flow cistern of Russia
Reporting by Maha el Dahan and Rowena Edwards, Editing by Kirsten Donovan
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