Opec+ Russia to meet as oil set for weekly gain on prospect of steady supply

Oil officials from the member states of the Organisation of the Petroleum of Exporting Countries (OPEC+) will meet on Sunday, December 3, to decide the next phase of production policy. Global crude prices were subdued on Friday as the proposed price cap on Russian crude kicks in on Monday. Brent, the benchmark for two-thirds of the world’s oil, was trading marginally lower at $85.57 a barrel at 8.08 pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was down 1.53 per cent at $79.98 a barrel.

On the other hand, Russia said it would not accept the $60 per barrel price cap for its crude oil agreed upon by the European Union, state news agency Tass reported, citing Kremlin spokesman Dmitry Peskov. It was the Kremlin’s first reaction after European diplomats decided on the threshold on Russian oil Friday evening following lengthy negotiations. The cap will ban companies from providing services, including shipping and insurance, to Russian oil shipments anywhere in the world unless it’s sold below the agreed level. “We’re analysing it now,” Peskov said on Saturday. “Some preparation has been made for such a cap. We will not accept this cap.” Moscow will announce how the work will be organised after the analysis, Peskov said, adding that it will be conducted quickly.

Following Sunday’s meeting, it is widely expected that Opec+ will stick to its latest target of reducing oil production by 2 million barrels per day (bpd) when it meets. Still, some analysts believe that crude prices could fall if the group does not make further cuts, according to news reports. Meanwhile, Iraqi oil minister Hayan Abdel-Ghani affirmed on Saturday that OPEC members are committed to the agreed production rates till the end of 2023. Abdel-Ghani made these remarks during a ministerial meeting of the member states of the OPEC via video conferenc