OPEC Decides to Reduce Production in Reaction to Russian Oil Price Limit

Russian Deputy Foreign Minister Alexander Pankin said that OPEC’s decision to cut oil production could be considered a step against capping Russian oil prices, noting that the oil price ceiling was illegal and unacceptable.

“We see the old and new move by OPEC to cut oil production as a measure against capping Russian oil prices,” Pankin said.

Pankin emphasized: “Creating a price ceiling for Russian oil is illegal and unacceptable, since there is a political side and there is an economic side, and from a political point of view, this is unacceptable … This restriction is unheard of.” and illegal.”

It is noteworthy that Western oil sanctions against Russia came into force on December 5, 2022, and the European Union stopped accepting sea transportation of Russian oil, and the G7 countries, Australia and the European Union introduced a limit on its price for sea transportation. transportation at the level of $60/bbl.From February 1, oil supplies to foreigners, if the contracts directly or indirectly provide for the use of the mechanism for determining the marginal price.

The monthly report of OPEC showed that the production of the member countries of the Organization decreased in March by 86,000 barrels per day compared to February last year, to 28.8 million barrels per day.

OPEC also maintained its oil production forecast for Russia at 10.3 million barrels per day for 2023 and still expects a decline in production by 0.75 million barrels per day.

Source: News

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