The oil alliance OPEC is sticking to its previous production strategy for the time being. At an online conference on Sunday, the association of 23 states confirmed its decision from October to produce two million barrels (159 liters each) less every day until the end of 2023.
The major oil exporting countries are leaving current production levels unchanged. Against the background of the latest sanctions against Russia, representatives of the countries belonging to the OPEC group agreed in a video conference on Sunday to stick to the course decided in October until the end of 2023, as two participants in the deliberations of the AFP news agency said. OPEC later confirmed this in a statement.
The OPEC countries led by Saudi Arabia and ten other partner countries, above all Russia, agreed two months ago to reduce production by two million barrels a day from November. That was the sharpest drop since 2020 at the beginning of the Corona crisis. The decision was “guided exclusively by market considerations,” said OPEC. It was “necessary and right” to stabilize the global oil markets. OPEC’s next meeting is scheduled for June 2023. In its statement, however, the group stressed that members could meet earlier if necessary “at any time”.
An EU embargo on Russian oil deliveries by ship comes into effect on Monday. On Friday, the G7 and EU countries as well as Australia also decided on an upper limit of 60 dollars (57 euros) per barrel (159 liters) for oil transported by sea from Russia. The price cap is intended to make it more difficult for Moscow to circumvent the sanctions imposed for the war of aggression against Ukraine through sales outside the EU or the G7. Russia had announced in advance that it would no longer supply oil to countries that introduced an upper limit. Kremlin spokesman Dmitry Peskov said on Saturday that Moscow would not accept the price cap. He added that Moscow had prepared in advance for such a cap, but gave no further details.
