The member countries of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to stick to their oil production target.
The organization made the statement public on Sunday, December 4, and Reuters describes the details.
The decision was made two days after the EU officially set the ceiling price for Russian oil at $60 per barrel. This applies to oil transported by sea. Following the EU, the G7 and Australia adopted a decision on the maximum price at the level of $60. However, OPEC+ says the price cap is unlikely to be effective because Russia sells most of its oil to countries such as China and India, which have refused to condemn the war in Ukraine.
OPEC+ angered the United States and other Western countries in October when it agreed to cut production by 2 million barrels per day, or nearly 2% of global demand, from November to the end of 2023. Washington then accused the organization and one of its leaders, Saudi Arabia, of siding with Russia despite the war in Ukraine. However, OPEC+ said it had cut production due to a worsening economic outlook, with oil prices falling since October due to slowing economic growth in China and the world, as well as higher interest rates.