The Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, a consultative group of major oil producers such as Russia, have agreed to maintain their current policy of reducing daily crude production.
At a meeting held yesterday (4th), OPEC+ decided to maintain the 2 million barrels per day cut in crude oil production agreed in October in Vienna, Austria.
This equates to around 2% of global demand.
The decision comes as the G7 and Australia agree on the 2nd to join the European Union’s decision to set the price ceiling for Russian crude oil at $60 per barrel.
If this decision is implemented, the G7, Australia and the EU will ban maritime services such as transportation and insurance for Russian crude oil above $60 per barrel.
Currently, the price of crude oil from the Russian Urals is around $70 per barrel.
Meanwhile, Russian Deputy Prime Minister Alexander Novak told Russia’s state-run TASS news agency that day that “interruptions in crude oil prices could further destabilize the market.”
“We will only sell (oil) to countries that will cooperate with us on market conditions, even if we reduce our production of oil and petroleum products a little,” he said.
* This article was sourced from Reuters.