Oil is declining ahead of the OPEC+ meeting and implementation of the EU ban on imports from Russia

A new rise in cases of COVID in China became the main reason for the decrease in oil prices since the middle of November. Due to the growth of the disease wave, quarantines in big cities are back again, business activity is falling, leading to mass disorders.

On December 4, a meeting of OPEC+ is planned to be held. After that, on December 5, the price cap for Russian oil is expected to be announced or a full oil embargo by the European Union is expected to be implemented. At the moment, these are the two most highly awaited key events.

The general opinion of OPEC+ alliance members is aimed at a cautious position regarding oil production volumes and at preserving and maintaining the existing agreements. Although, rumors and expectations from the OPEC+ meeting are rather controversial.

At the same time, the EU has not yet reached a unified agreement on the price cap for Russian oil.

The National Oil and Gas Service Association has prepared a baseline scenario in expectation of news. According to their opinion, by the middle of December the OPEC+ agreements will continue, and China's peak COVID restrictions will end. Also, by the end of 2022, the price of oil will be set at $90 per barrel of Brent, and the average price in 2023 will be $85.