OPEC+ maintains production policies unchanged

OPEC+ alliance decided on Sunday to maintain its current production targets unchanged due to weaker global economic outlook.

The global alliance's decision was expected amid important developments in the market that will impact the demand and supply balance. 

The EU decided to ban Russian oil imports through sea, starting December 5, while European governments put price ceiling of $60 a barrel on Russian crude, while Chinese cities ease restrictions due to Covid 19. 

OPEC+

The oil cartel and allies agreed this week to maintain current output policies unchanged, with a previous cut of 2 million bpd ongoing. 

Members asserted their readiness to intervene any time if required and take immediate measures to support the market.

Bloomberg reported that the reasons behind the decision is the state of uncertainty in global markets due to uncertainty about Russian supplies and Chinese demand. 

European Ban

Starting today, the EU started to ban Russian oil imports through sea amid a batch of sanctions imposed on the Kremlin for invading Ukraine. 

The International Energy Agency warned that such a ban will put more pressure on the oil market, especially diesel markets which are already very taxed. 

Price Ceiling

The EU put a price cap of $60 a barrel on Russian oil prices after prolonged discussions and doubts about the effectiveness of such a move. 

The EU is thus joining  Britain, the US, and Australia in executing the price ceiling. 

Chinese Demand

Hopes are improving as China eases Covid 19 restrictions and opens up the economy one more.

The economy was hurt by the zero tolerance policy by the Chinese government, which promoted surprising protests in major cities.