Dec 4, 2022 - Economy

OPEC+ agrees to maintain oil production targets

OPEC's logo on the side of its headquarters in Vienna in 2019.

OPEC's logo on the side of its headquarters in Vienna in 2019. Photo: Omar Marques/SOPA Images/LightRocket via Getty Images

OPEC and its allied producers agreed to maintain their current oil-output targets during a videoconference on Sunday.

Why it matters: The decision comes despite a recent decline in energy prices and a price cap on Russian oil by the Group of 7 nations set to take effect on Monday.

The big picture: G7 nations, the European Union and Australia agreed on Friday to cap the price of Russian seaborne oil at $60 per barrel starting on Dec. 5 in response to Russia's illegal invasion of Ukraine.

  • The Kremlin said Saturday it will not comply with the price cap and indicated it may stop oil supplies to countries that agree to the limit.
  • Despite the sanctions on Russian oil, energy prices have significantly decreased over the last few months. U.S. oil prices briefly fell to their lowest level since 2021 last week, though they later made their largest weekly gain in a month.
  • The drop was in part a result of a slowdown in China's economy from the Chinese government's zero-COVID policies, which set off nationwide protests last month.

Go deeper: Putin's invasion permanently weakened Russian oil and gas

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