Organization of the Petroleum Exporting Countries (OPEC) and Russia and other major non-OPEC oil producing countries, ‘OPEC Plus’ (OPEC+), have decided to continue their policy of cutting production by 2 million barrels per day.
In a statement issued after a regular ministerial meeting on the 4th, OPEC+ announced that it would maintain the production cut policy agreed upon at the last meeting.
OPEC+ said in a statement that it “will observe future crude oil markets and respond immediately if necessary to balance supply and demand and stabilize prices.”
In October, OPEC+ held a regular meeting and agreed to reduce crude oil production by 2 million barrels per day from November and keep it until the end of next year.
Currently, oil production by OPEC+ producers stand at 41.85 million barrels per day, down 2 million barrels from October.
OPEC+, which decided to cut production the most since the Corona 19 pandemic, argued that it was an economic decision due to growing market uncertainty, such as heightened concerns about a recession at the time.
The U.S. and European countries, which were trying to contain Russia’s invasion of Ukraine and control inflation, condemned the oil-producing countries’ decision.
Kuwait Energy Minister Bader al-Mullah said that the decision to maintain production cuts was a decision that helped stabilize the market.
The next OPEC+ regular ministerial meeting is scheduled for June 4 next year.
Foreign media such as Reuters reported that the OPEC+ decision came as the European Union (EU), the G7 countries, and Australia agreed to set the price ceiling for Russian crude oil at 60 dollars (about 80,000 won) per barrel.
Russian Deputy Prime Minister Aleksandr Novak argued that “Rather than supplying oil below the price cap, Russia will reduce production, and this action by the West may affect other oil-producing countries.”
Reuters, citing sources, said that during the OPEC+ meeting on the day, ministers from several oil-producing countries expressed concerns about the introduction of the cap on Russian crude oil.