Opec+ to continue cuts in bid to boost oil price

摘要

OPEC+ members will continue cutting output by at least 2 million barrels per day until the end of next year in an effort to boost oil prices amid uncertainty over Russian sanctions and concerns about global demand. The decision was made as a European Union ban on Russian crude imports came into force on Monday, along with a $60 per barrel price cap imposed by the wider G7 group of leading economies on Russian seaborne oil transported to countries outside Europe not participating in the EU's full embargo. Oil prices continued to remain stable on Monday morning, with the Brent spot contracts trading slightly over $85.9 per barrel, despite Opec+'s decision and the potential impact of the sanctions. Wood Mackenzie macro oils vice president Ann-Louise Hittle said in a note that Opec+'s decision "is not a surprise, given the uncertainty in the market over the impact of the 5 December EU Russia crude oil import ban and the G7 price cap". "In addition, the producers' group faces downside risk from the potential for weakening global economic growth and China's zero Covid policy," she added. Hittle said the outcome fits with WoodMac's short-term forecast, which assumed a continuation of the recent cuts.