- OPEC met on Saturday for administrative talks
- No price cap talks in Russia so far – delegates
- OPEC+ will hold a virtual meeting on December 4
LONDON/DUBAI, Dec 3 (Reuters) – OPEC+ is likely to stick to its oil production targets when it meets on Sunday, five OPEC+ sources said on Saturday, a day after the Group’s countries of the Seven (G7) have agreed on a price cap for Russian oil. .
OPEC+, which includes 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 the production of 2 million barrels per day (bpd), or about 2% of world production. request, from November to the end of 2023.
Washington has 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 and that oil prices had fallen since October due to slowing Chinese and global growth and rising interest rates.
On Friday, G7 nations and Australia agreed to a $60-a-barrel price cap on Russian maritime crude oil in a bid to starve President Vladimir Putin of revenue while keeping Russian oil flowing to markets global.
Moscow said it would not sell its oil below the cap and was considering how to respond.
Many OPEC analysts and ministers said the price cap was confusing and likely ineffective, as Moscow sold most of its oil to countries like China and India, which refused to condemn the war in Ukraine.
OPEC met virtually on Saturday without allies such as Russia and discussed mostly administrative matters, sources said. Ministers did not discuss price caps in Russia.
Five OPEC+ delegates said Saturday that Sunday’s OPEC+ meeting would likely approve a renewal of the policy.
On Friday, two separate OPEC+ sources said a further production cut was not completely off the table given concerns about economic growth and demand.
OPEC+ begins talks at 11:00 GMT on Sunday with a meeting of the Joint Ministerial Monitoring Committee (JMMC) advisory group, followed by the full ministerial conference.
Reporting by Alex Lawler and Ahmad Ghaddar
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