On Wednesday, November 30, Reuters quoted people familiar with the matter as saying that “OPEC+” decided to hold a virtual meeting on December 4. That suggests little chance of a change in policy.
The virtual meeting will also focus on an impending EU deal to cap Russian oil prices ahead of a Dec. 5 deadline. This deadline is also the deadline for the European Union to completely ban the purchase of Russian seaborne crude oil.
“At this point, ‘OPEC+’ prefers to wait and assess the outcome of what will happen on Monday,” the source said.
On Tuesday, 29th, Agence France-Presse quoted sources as saying that it had decided to replace the physical meeting of “OPEC+” scheduled to be held in Vienna on Sunday, December 4th with a virtual meeting.
Bloomberg also reported that the OPEC+ meeting would be virtual, suggesting that the current proposed policy does not have an amendment requiring an in-person meeting.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia will hold a so-called “OPEC+” meeting. Meanwhile, a looming European Union ban on Russian crude imports, coupled with a cap on Russian oil prices imposed by the Group of Seven nations, has raised questions about supply.
In October, “OPEC+” agreed to cut production by 2 million barrels per day, a figure equivalent to 2% of global supply.
Experts at Unikredit believe they expect so-called “pre-emptive” measures by “OPEC+” to exert “price pressure”. That pressure has subsided somewhat against a backdrop of heightened concerns about Chinese demand and a general slowdown in the global economy.
European negotiations stalled
In this context, Bloomberg quoted diplomats as saying that negotiations among European parties on setting limits on Russian oil prices are still pending, and at this time it is only a week before Europe bans the import of Russian crude oil.
Estonia has called for a minimum cap on Russian oil, while Lithuania has ignored any need to adopt a specific price, the sources also said.
According to Bloomberg, EU countries discussed whether to limit the price of Russian crude at $62 a barrel.
Bloomberg also said that Poland and the Baltic states believe that the level of the proposed Russian oil price ceiling is still too high.