Monitoring Desk
LONDON: Organization of the Petroleum Exporting Countries (OPEC+), the organization of major oil producers, is expected to stick to their current oil production strategy or further cut oil production when they meet on Sunday in the face of falling oil prices, a potential Russian oil price cover and a ban on Russian crude shipments.
The OPEC organization, headed by Saudi Arabia and its 10 allies led by Russia, at their last ministerial session in October, had agreed to cut per day oil output by two million barrels from November 2022.
OPEC+ Reduction is Biggest Since Covid-19 Pandemic in 2022
The OPEC+ reduction is the biggest reduction in oil production since the height of the coronavirus pandemic in the year 2020.
Amid fears of economic slowdown, the OPEC+ ministerial session is convened ahead of the European Union’s plan to enforce an embargo on Russian oil shipments from Monday.
The Group of Seven Countries (G7) and Australia, and the European Union had also appeared close to agreeing on a 60 US dollar per barrel price cover on Russian oil on Thursday.
