With the economy slowing and Russian sanctions, OPEC+ agrees not to increase oil production
Clergymen from OPEC+ concurred during a Sunday meeting to adhere to its strategy of downsized oil creation in the midst of an easing back economy and a G7-forced cap on Russian oil.
The decision comes after OPEC+, which is made up of the Organization of Petroleum Exporting Countries and allies like Russia, said at the beginning of October that it would cut production to 2 million barrels per day (BPD), which is about 2% of what the world needs.
Washington was enraged by the move, and the Biden administration accused Saudi Arabia, the leader of OPEC+, of effectively supporting Russia in its war against Ukraine.
According to OPEC+ ministers, the cut was made in response to a weaker economic outlook. They denied that the move was politically motivated. Oil prices have fallen in the weeks since because of higher interest rates and slower growth, particularly in China.
A monitoring committee of the group’s key ministers will meet on February 1, 2023. A full meeting is planned for the beginning of June.
The European Union reached a deal on Friday to limit Russian maritime oil to $60 a barrel in an effort to maintain low global oil prices, which led to the announcement on Sunday. Western businesses will not be able to ship, finance, or insure Russian oil that is sold for less than $60 per barrel under the terms of the agreement.
Europe was warned by the Kremlin that it would have to “live without Russian oil” if the EU’s plan was implemented.
Mikhail Ulyanov, Russia’s permanent representative to International Organizations in Vienna, stated in a tweet on Saturday, “Moscow has already made it clear that it will NOT supply oil to those countries who support anti-market price cap,”