Ministers from OPEC+ agreed during a Sunday meeting to stick to its policy of scaled-back oil production amid a slowing economy and a G7-imposed cap on Russian oil.
The decision comes after OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies, including Russia, announced in early October it would be cutting output to 2 million barrels per day (bpd) – or about 2% of world demand.
The move angered Washington, with the Biden administration accusing OPEC+’s leader, Saudi Arabia, of effectively siding with Russia in its war against Ukraine.
OPEC+ ministers denied that the move was politically motivated, saying the cut was made in response to a weaker economic outlook. In the weeks since, oil prices have declined amid slower growth – particularly in China – and higher interest rates.
The group’s key ministers will meet on Feb. 1, 2023, for a monitoring committee. A full meeting is scheduled for early June.
Sunday’s announcement comes after the European Union on Friday reached a deal to cap Russian maritime oil at $60 a barrel in an attempt to keep global oil prices down. Under the agreement, Western companies will not be able to insure, finance or ship Russian oil it is sold for less than $60 a barrel.
The Kremlin rejected the EU’s plan and warned Europe that it will have to "live without Russian oil."
"Moscow has already made it clear that it will NOT supply oil to those countries who support anti-market price cap," Mikhail Ulyanov, Russia's permanent representative to International Organizations in Vienna said in a Saturday tweet.
Reuters contributed to this report.