# Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oil Prices Rise as OPEC+ Holds Output Targets Steady
Meta Description: Discover how OPEC's decision to hold output targets steady impacts fuel demand and price caps on Russian crude. Stay informed on oil market trends.
URL: https://financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposedhtml

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By Noah Browning

LONDON (Reuters) -Oil prices rose on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a G7 price cap which kicked in on Russian crude.

At the same time, in a positive sign for fuel demand in the world’s top oil importer, more Chinese cities eased COVID-19 curbs over the weekend.

While [prices rose as much as 2% earlier in the day](https://www.financedigest.com/cant-buy-me-love-plummeting-cocoa-prices-make-chocolate-cheaper-this-valentines-day.html "Can’t buy me love? Plummeting cocoa prices make chocolate cheaper this Valentine’s Day"), both the Brent and U.S. West Texas Intermediate (WTI) contracts have [since pared some gains](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February").

Brent crude [futures were last up $1.51, or 1.8%, to $87.08 a barrel at 0945 GMT, while WTI crude futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") $1.40, also 1.8%, to $81.38 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October [plan to cut](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year") output by 2 million barrels per day (bpd) from November through 2023.

“The decision … is not a surprise, given the uncertainty in the [market over the impact](https://www.financedigest.com/how-will-mortgages-and-the-housing-market-be-impacted-by-coronavirus.html "How will mortgages and the housing market be impacted by coronavirus?") of the Dec. 5 EU Russia crude [oil import ban and the G7 price](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") cap,” said Ann-Louise Hittle, vice president of consultancy Wood Mackenzie.

In addition, the producers’ group faces downside risk from the potential for weakening global economic growth and [China’s zero Covid policy.”](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports")

The Group of Seven (G7) countries and Australia last week agreed on a $60-a-barrel [price cap on seaborne Russian oil](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook").

Business and manufacturing activity in China, the [world’s second largest economy](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World"), have been hit this year amid strict measures to curb the spread of the coronavirus.

Persistent sluggishness in China’s economy could reverse [oil’s price gains](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high"), said Leon Li, a Shanghai-based analyst at CMC Markets.

The current [economic data](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") of China is still weak … It is challenging to drive the demand for [crude oil,”](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") said Li.

(Reporting by Sonali Paul in Melbourne and Emily Chow in Singapore; Editing by Kirsten Donovan)


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