Group of oil producers in focus ahead of sanctions against Russia

Led by Saudi Arabia and Russia, OPEC+ agreed in early October to cut output by 2 million barrels per day from November.

Vladimir Simicek | Afp | Getty Images

On Sunday, an influential alliance of oil producers agreed to stay the course on output policy ahead of an expected European Union ban on Russian crude.

OPEC producers and non-OPEC countries, a group of 23 oil-producing nations known as OPEC+, decided to stick to their existing policy of cutting oil production by 2 million barrels per day, or about 2% of global demand. from November to the end of 2023

Energy analysts had expected OPEC+ will consider further production cuts to support prices ahead of a possible double whammy on Russia’s oil revenues.

The European Union is poised to ban all imports of Russian offshore crude from Monday, while the US and other G7 members will impose a ceiling on the price of oil that Russia sells to countries around the world.

The Kremlin has previously warned that any attempt to cap Russian oil prices would do more harm than good.

Oil prices fell to below $90 a barrel from above $120 in early June ahead of potentially damaging sanctions on Russian oil, weakening Chinese crude demand and growing recession fears.

Led by Saudi Arabia and Russia, OPEC+ agreed in the beginning of October to cut production by 2 million barrels per day from November. It came despite calls from the US for the group to pump more to lower fuel prices and help the global economy.

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