OPEC+ Monitoring Committee suggested It does not change the current oil production plan, which provides a reduction of 2 million barrels per day in production.
“Participating countries reaffirmed their readiness to come together at any time and take urgent additional measures to respond to market changes and, if necessary, to maintain the balance and stability of the oil market,” the organization’s press service said in a statement.
On October 5, an agreement was reached to cut oil production by 2 million barrels per day, which Saudi Arabia and Russia insisted on. Washington accused Riyadh of coordinating its energy policy with Moscow.
The next 35th OPEC and non-OPEC ministerial meeting will be held on June 4, 2023. Russian Deputy Prime Minister Alexander Novak also said that the OPEC+ Ministerial Monitoring Committee will hold its next meeting on February 1.
“We agreed with us that the next meeting will be held on February 1 – the JMMC (Ministerial Monitoring Committee) and the ministerial meeting – in June next year,” he said on the broadcast of the TV channel Rossiya-24.
Novak also stressed that OPEC+ countries can always hold extraordinary meetings, “but this is not necessary at the moment.” “We approved the decisions taken two months ago,” the Deputy Prime Minister concluded.
“Best Condition”
Novak pointed out that the global oil market is now in better shape than two months ago. However, there is “still a lot of uncertainty” in the industry.
“While we certainly drew attention to many uncertainties today, we emphasized that the market is in better shape than two months ago,” the Deputy Prime Minister said.
“This also concerns the high level of inflation in many countries, high government debt, tightening monetary policy of many countries. “An important point is, of course, the periodically recurring coronavirus outbreaks in China, which is the largest energy source consumer,” he said.
Ceiling price
Novak also said that the Russian authorities have developed a mechanism that will ban the application of ceilings on oil prices from the Russian Federation, brought by EU and G7 countries.
“We believe this instrument is non-market, inefficient. <...> We are working on bans on the use of the price cap instrument, whatever level is set, because in our view such intervention could lead to further market destabilization, scarcity of energy resources and reduced investment. It can affect not only oil, but also other products on the market,” he said.
On December 2, the permanent representatives of the EU countries agreed on the ceiling price of Russian oil at $60 per barrel. Almost similar restrictions were adopted by the G7 countries and Australia. The ban takes effect on December 5.
Russian authorities have repeatedly emphasized that they will not accept ceiling prices. President Vladimir Putin said in October that the Russian side would not sell raw materials at discounted prices. Novak once again clarified Moscow’s stance: “Even if we have to cut production a little, we will sell oil and oil products to countries that will work with us on market conditions.”
“I want to emphasize once again that our position has not changed,” the Deputy Prime Minister summarized.
Source: Gazeta
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