The organization does not know what will happen to the demand in China and the offer from the Russian Federation.
OPEC has decided to maintain oil production at the current level in order to sum up the results of the world market of the industry in 2022. Currently, the situation remains uncertain, as it is difficult to predict demand in China and supply from the Russian Federation.
As the Bloomberg portal reported, the organization of 23 oil exporting countries held an online meeting. After that, the implementation of a significant reduction in the production of “black gold” by 2 million barrels per day began. The cartel members agreed to this decision at the previous meeting in October.
The price of Brent oil futures gradually decreased during almost November, reaching a value of less than $81 per barrel. She was at these marks in the fall of 2021 and last January. However, the biggest bounce since September 28 has taken place over the past week.
The volatility is related to the limitation of the maximum price of oil from Russia, which is part of OPEC. At the same time, China has previously decided to reduce measures to fight against COVID-19. Due to them, the world level of consumption of black gold has greatly decreased, as the Celestial Empire remains the largest importer.
“Ceiling” of Russian oil prices: what is known
Yesterday, December 3, the European Union agreed on the maximum price of “black gold” from the Russian Federation. The price limit is set at $60 per barrel.
The President of Ukraine, Volodymyr Zelenskyi, believes that such a “ceiling” is comfortable for the aggressor. In his opinion, the marginal price should be halved.
The US State Department called the restriction’s double effect. Russia will lose income, and Europe will begin to wean itself off oil from the Russian Federation.
Hungary was exempted from observing the “ceiling” of the price of Russian oil. According to the head of the Ministry of Foreign Affairs, Peter Sijarto, this will “protect the security of the country’s energy supply”.
