OPEC+ to consider deeper oil output cuts ahead of Russia sanctions and proposed price cut
OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will convene on Sunday to decide on the next phase of production policy.
The highly anticipated meeting comes ahead of potentially disruptive sanctions on Russian oil, weakening crude demand in China and mounting fears of a recession.

OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will convene on Sunday to decide on the next phase of production policy.

OPEC and non-OPEC oil producers could impose deeper oil output cuts on Sunday, energy analysts said, as the influential energy alliance weighs the impact of a pending ban on Russia's crude exports and a possible price cap on Russian oil.

OPEC+, a group of 23 oil-producing nations led by Saudi Arabia and Russia, will convene on Sunday to decide on the next phase of production policy.

The highly anticipated meeting comes ahead of potentially disruptive sanctions on Russian oil, weakening crude demand in China and mounting fears of a recession.
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Claudio Galimberti, senior vice president of analysis at energy consultancy Rystad, told CNBC from OPEC's headquarters in Vienna, Austria, that he believes the group "would be better off to stay the course" and roll over existing production policy.

"OPEC+ has been rumored to consider a cut on the basis of demand weakness, specifically in China, over the past few days. Yet, China's traffic nationwide is not down dramatically," Galimberti said.

Energy market participants remain wary about the European Union's sanctions on the purchases of the Kremlin's seaborne crude exports on Dec. 5, while the prospect of a G-7 price cap on Russian oil is another source of uncertainty.

The 27-nation EU bloc agreed in June to ban the purchase of Russian seaborne crude from Dec. 5 as part of a concerted effort to curtail the Kremlin's war chest following Moscow's invasion of Ukraine.

Concern that an outright ban on Russian crude imports could send oil prices soaring, however, prompted the G-7 to consider a price cap on the amount it will pay for Russian oil.

No formal agreement has yet been reached, although Reuters reported Thursday that EU governments had tentatively agreed to a $60 barrel price cap on Russian seaborne oil.

"The other factor OPEC will need to consider is indeed the price cap," Galimberti said. "It's still up in the air, and this adds to the uncertainty."

The Kremlin has previously warned that any attempt to impose a price cap on Russian oil will cause more harm than good.

'So much uncertainty'
OPEC+ agreed in early October to reduce production by 2 million barrels per day from November. It came despite calls from the U.S. for OPEC+ to pump more to lower fuel prices and help the global economy.

The energy alliance recently hinted it could impose deeper output cuts to spur a recovery in crude prices. This signal came despite a report from The Wall Street Journal suggesting an output increase of 500,000 barrels per day was under discussion for Sunday.


OPEC+ agreed in early October to reduce production by 2 million barrels per day from November. It came despite calls from the U.S. for OPEC+ to pump more to lower fuel prices and help the global economy.
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Speaking earlier this week, RBC Capital Markets' Helima Croft said there was no expectation of a production increase from the upcoming OPEC+ meeting and a "significant chance" of a deeper output cut.

"There is so much uncertainty," Croft told CNBC's "Squawk Box" on Tuesday. OPEC delegates "have to factor in what happens with China but also what happens with Russian production."

However, after news that Sunday's meeting will be held virtually, rather than in-person, Croft said in a research

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Natural resources is the best sword for war

Biden willnt happy with this.....But who cares.

Choi, na we innocent people dey suffer the hardship

I pity people in shithole countries. They have no safety net.

I pity the poor citizens of the western countries that'll suffer for this

The western world should prepare for protests. It's already set to come.

Abeg make them no cut Nigeria own oooh because our leaders will use that as excuse oooh