OPEC+ Keeps Oil Curbs Despite Russia’s Price Cap

Members of the “OPEC +” group met Sunday, a day before the entry into force of the EU’s decision to set a ceiling for the price of Russian oil transported by sea.

This meeting caused Brent crude futures contracts to fall by $1.10, or 1.1%, to $85.87 per barrel. US West Texas Intermediate crude futures contracts dropped by cents to $80.47 a barrel.

The group is expected to maintain its goals and policy for oil production after the G7 countries agreed on a maximum price for Russian oil.

OPEC +, which includes the Organization of the Petroleum Exporting Countries (OPEC+) and allies including Russia, angered the US and other Western countries in October when it agreed to cut production by two million barrels per day, or about 2% of global demand, until the end of 2023.

The G7 countries and Australia also agreed on Friday that Russian crude oil should be sold at the maximum price possible per barrel if it were transported by sea. This is in a move to deprive President Vladimir Putin of revenue while preserving the flow of Russian oil to global markets.

Moscow said it would not sell its oil according to this cap and was analyzing the appropriate response.

Several OPEC+ analysts and ministers said the price cap is puzzling and may be ineffective. This is because Moscow sells most of its oil to countries such as China and India that have refused to condemn Russia’s military operation in Ukraine.