Opec+ agreed to stick to its oil output targets at a meeting on Sunday, two Opec+ sources told Reuters, as the oil markets struggle to assess the impact of a slowing Chinese economy on demand and a G7 price cap on Russian oil on supply. The decision comes two days after the Group of Seven (G7) nations agreed a price cap on Russian oil. Opec+, which comprises the Organization of the Petroleum Exporting Countries (Opec) and allies including Russia , angered the United States and other Western nations in October when it agreed to cut output by 2 million barrels per day, about 2 per cent of world demand, from November until the end of 2023. Washington accused the group and one of its leaders, Saudi Arabia , of siding with Russia despite Moscow’s war in Ukraine . Biden vows ‘consequences’ for Saudi Arabia after Opec cut Opec+ argued it had cut output because of a weaker economic outlook. Oil prices have declined since October due to slower Chinese and global growth and higher interest rates , prompting market speculation the group could cut output again. “It’s a rollover until the end of 2023,” an Opec+ source said after the group’s key ministers reached a decision. The Opec+ full ministerial meeting was still continuing at 12:10 GMT. On Friday, G7 nations and Australia agreed on a US$60 per barrel price cap on Russian seaborne crude oil to deprive President Vladimir Putin of revenue while keeping Russian oil flowing to global markets. Moscow said it would not sell its oil under the cap and was analysing how to respond. Many analysts and Opec ministers have said the price cap is confusing and probably inefficient as Moscow has been selling most of its oil to countries like China and India , which have refused to condemn the war in Ukraine . Opec met virtually on Saturday without Russia and allies and did not discuss the Russian price cap, sources have said. The group will meet again for a full meeting on June 4, according to a delegate, though ministers can convene earlier if they want. The Joint Ministerial Monitoring Committee, which oversees implementation of production cuts, will meet again on February 1, according to delegates.
