Saudi Press

Saudi Arabia and the world
Wednesday, Nov 29, 2023

OPEC+ maintains status quo on output amid fresh price cap on Russian oil 

OPEC+ maintains status quo on output amid fresh price cap on Russian oil 

The Organization of Petroleum Exporting Countries, and its allies, known as OPEC+, has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies.  
The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022.  

Earlier in October, OPEC+ had agreed to cut output by 2 million barrels per day, which equals to about 2 percent of world demand, from November until the end of 2023.  

Mohammed Al Suwayed, CEO of investment advisory company Razeen Capital, said OPEC+ is being cautious about committing to any production cut while the EU price cap for Russian oil is going into effect this week. "We might see a different decision by the next meeting after the assessment of the Russian oil price cap implications." He added. 

OPEC+'s decision to adopt a wait-and-see approach appears to be a very well-thought-out decision, according to Hassan Balfakeih, the former chief oil demand analyst at OPEC Secretariat.

He added: "Given the growing uncertainty in the oil markets on both the supply and demand side, OPEC+'s decision to adopt a wait-and-see approach appears to be a very well-thought-out decision. Among these are the hazy price-cap policy for Russian oil, the global gloomy economic outlook, a rise in COVID-19 cases in China, and fluctuations in demand throughout the winter season in the western hemisphere."

OPEC+'s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.

On Friday, G7 nations and Australia agreed to put a price cap on Russian oil at $60 a barrel, a price higher than where Russia already sells most of its crude, ultimately aimed at maintaining Russian oil flowing to global markets.  

Post the EU decision, a senior Ukrainian presidential aide said that the price cap on Russian seaborne crude oil agreed to by the G7 countries and Australia should be lowered to $30 per barrel, Reuters reported.  

“This was everything that was proposed by the McFaul-Yermak group, but it would be necessary to lower it to $30 to destroy the enemy’s economy quicker,” Andriy Yermak, head of Ukraine’s presidential administration, wrote on Telegram.  

Meanwhile, Russia said that it will not accept the price cap imposed by G7 countries and Australia.  

“We will not accept this ceiling,” said Kremlin spokesman Dmitry Peskov, Russian news agency Tass reported.  

Kremlin also noted that Russia will not send its oil under the energy cap proposed by G7, and added that the country is analyzing how to respond to these fresh sanctions.  

Leonid Slutsky, chair of the Russian lower house’s foreign affairs committee, told the Tass news agency that the EU jeopardized its own energy security by setting a price cap on Russian seaborne oil.  

He also added that the EU's decision is violating the market's laws. Amid these developments, Russia seems confident regarding the demand for its oil.  

In comments published on Telegram, Russia’s embassy in the US criticized the move by the G7 and made it clear that the country will continue to find buyers for its oil.  

“Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand,” the Russian embassy said.  

Related Articles

Saudi Press
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Bill Gates Envisions a Possible 3-Day Work Week with AI
Abu Dhabi-Backed Fund Poised to Assume Control of UK's Telegraph Media Group
Biden Advocates for Palestinian Authority to Govern Gaza and West Bank
Apple and Disney Halt Ads on X Following Elon Musk's Antisemitic Post, US Reacts
The UK’s Supreme Court, in a move that surprised no one who respects international law and human rights, has just delivered a landmark ruling against Prime Minister Rishi Sunak’s immigration strategy.
Top German journalist received €600,000 from Putin ally, leak reveals
A Dramatic Video from Gaza, Provided by IDF Spokesperson Daniel Hagari, Offers Undeniable Evidence of Hamas Establishing Terror Operation Bases Near Schools, Above Hospitals, and Inside Civilian Areas.
Moody's Downgrades U.S. Credit Outlook to Negative Amid Fiscal Concerns
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Swedish Embassy in Baghdad Engulfed in Flames Amidst a Firestorm of Protests
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Today, we're unveiling the splendor of one of Saudi Arabia's most exclusive and stunning retreats – the Jeddah Yacht Club
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Muslim Tycoon Asif Aziz Receives Approval for the Transformation of the iconic London Trocadero Landmark into Mosque