she decided Stick of the “OPEC Plus” group. With its oil production targets at Sunday’s meeting, as oil markets struggle to assess the impact of China’s economic slowdown on demand and the implications of the Group of Seven’s decision to cap Russian oil price on the ‘offer.
According to a statement received by Al-Arabiya.net, a copy of it; Following Sunday’s meeting, the “OPEC Plus” coalition reiterated its previous decisions, including the bimonthly adjustment of the monthly meetings of the Joint Ministerial Committee for Production Monitoring, empowering the Committee to hold further meetings, or to request the holding of the ministerial meeting of member states in any country Time, to address any market developments, when requested.
The press release reiterates the importance of full compliance with the agreement and the compensation mechanism, and of benefiting from the extension approved at the thirty-third ministerial meeting of OPEC Plus.
The decision of the “OPEC Plus” alliance was based solely on market considerations, as market participants and the oil industry confirmed that it was the necessary and correct measure to achieve stability in global oil markets and, in accordance with the proactive and initiative approach, the “OPEC Plus” member states reaffirmed their willingness to meet at any time and take more immediate measures to address any market developments, to support the balance and stability of the oil markets where necessary.
The 35th Ministerial Meeting of OPEC Plus Member States will be held on 15 Dhu al-Qidah 1444 AH, corresponding to 4 June 2023 AD, and the 47th Monitoring Committee meeting will be held on Rajab 10, 1444 AH, corresponding to 1 February 2023 AD
The decision comes two days after the Group of Seven agreed on a price ceiling for Russian oil.
OPEC+ includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia. In October, the coalition approved a production cut of two million barrels a day, or about 2% of global demand, from November to the end of 2023.
OPEC+ attributed its decision at the time to cut production to the weak economic outlook. Oil prices have fallen since October due to slower growth in China and globally and higher interest rates.
The G7 and Australia agreed on Friday to cap the price of a barrel of seaborne Russian crude to $60 a barrel, in a move aimed at limiting Moscow’s revenue by keeping Russian oil flowing to global markets.
Moscow has said it will not sell its oil below this limit and is studying the situation to respond.
Others were expectations that OPEC Plus alliance ministers could approve major oil production cuts at today’s meeting to lessen the effects of the tightening of sanctions against Russia on markets, including the decision of the European Union to impose a price cap.
Energy consultant, former OPEC director of energy studies Faisal Al-Fayek said OPEC+’s decision is not a reaction to Europe’s oil price ceiling.
Al-Fayek added in an interview with Al-Arabiya that expectations were that there would be a deepening of production cuts, or even a continuation of the same policy of reducing production by two million barrels per day.
He explained that this measure reflects the physical market now, adding that there is a decline in spot oil prices.
Al-Fayek revealed that the price ceiling imposed by Europe on Russian seaborne oil will not affect Russian oil production and exports, because most of it goes to Asian refineries.
The meeting of the “OPEC+” alliance came at a sensitive time, with the possible imposition of huge additional sanctions on Russian oil, which weakens demand for crude oil in China and intensifies fears of a recession.
The 27-nation European Union agreed last June to ban the purchase of Russian maritime crude starting December 5, 2022, as part of a concerted effort to reduce financial imports to the Kremlin following Ukraine’s invasion by part of Moscow.
However, concern that a blanket ban on imports of Russian crude could lead to higher oil prices prompted the Group of Seven major industrialized nations to consider limiting the amount they would pay for Russian oil.
EU governments have agreed to limit the price of Russian seaborne oil to $60 a barrel.