OPEC+ Switch to Virtual Meeting Signals Policy Roll-Over Ahead Of Russian Oil Price Cap

  • The OPEC+ decision to hold its Dec. 4 meeting virtually signals little likelihood of a policy change, sources told Reuters on Wednesday, Nov. 30, as the group assesses the impact of the looming Russian oil-price cap on the market.
  • A virtual meeting puts the focus on the pending European Union deal over the price cap on Russian oil, as well as a Dec. 5 deadline imposed by the bloc for a full embargo on purchases of Moscow's seaborne crude.
  • "OPEC+ would rather sit on the bench at this time and assess the outcome of what happens on Monday," one source with direct knowledge of the matter told Reuters on Wednesday.
  • The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, also meet as China's COVID-19 lockdowns weigh on demand and prices. Still, oil on Wednesday gained support from hopes of a Chinese demand recovery.
  • OPEC+ had been expected to convene in Vienna for only the second time since the pandemic.

(Source: Reuters)