The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, decided to keep its oil production target unchanged at its latest meeting, which was held on Sunday. The decision to maintain the current output target was expected, and comes after the group cut production by 2 million barrels per day (bpd) in November.
The move by OPEC+ was likely influenced by the recent decision by the Group of Seven (G7) nations to agree on a $60 per barrel price cap on Russian seaborne oil. However, the OPEC+ group did not discuss the G7 price cap at Sunday’s meeting, according to sources who spoke with Reuters.
Overall, the decision by OPEC+ to keep its oil production target unchanged reflects the ongoing uncertainty and volatility in the global oil market. The group will likely continue to closely monitor market conditions and make adjustments to its output target as needed in the coming months. With no end in sight to the war in Ukraine and winter just around the corner for Europe, further production cuts are unlikely, though much uncertainty remains. On December 6th, Russian news agency Interfax (IFX) reported that Russia “will not limit itself responding to the oil price cap” set by the G7 nations, though by what means by which they will respond remains uncertain.
Questions still remain as to who was behind the intenional sabotage of the Nord Stream pipelines on September 26th of this year. The Kremlin claims it was orchestrated by British Navy personell, while the U.K. and United States government have indicated Russia is the likely perpetrator.
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