OPEC+ Stays the Course With Cuts

The move comes as an EU embargo of tanker shipments of Russian crude takes effect.

December 05, 2022

ALEXANDRIA, Va.—OPEC+ yesterday decided to continue trimming oil production by two million barrels per day through 2023, staying the course with a policy set in early October, despite U.S. calls to pump more oil, CNBC reports.

Today, the European Union and the United Kingdom banned all imports of crude oil from Russia as a result of the conflict in Ukraine, and an embargo on diesel and other refined oil products from Russia is slated to take effect February 5.

The U.S. and the Group of 7 industrialized nations also have imposed a $60 a barrel price cap on Russian oil. Moscow has indicated that it won’t accept a price cap.

The Biden Administration had decried the production cut which amounts to about 2% of global oil production at the last meeting of OPEC+ on October 5. The group is slated to meet again on June 4, 2023, but signaled it could meet earlier if needed.

Oil prices rose on the news. Futures contracts for benchmark Brent crude rose 2.7% to $87.95 a barrel in London this morning.