OPEC+ member states agreed to stick to their oil output reduction targets on Sunday, 4 December, over fears of a slowing Chinese economy, the G7 price cap on Russian oil, and increasing rate hikes by the US Federal Reserve (FED).

In early October, the oil producing bloc agreed to reduce its overall output by 2 million barrels per day (bpd), a move that was heavily criticized by US President Joe Biden as his nation has been struggling with inflation above the two percent target, despite aggressive rate hikes by the the FED.

Additionally, western sanctions targeting the Russian energy market and a $60 per barrel price cap on Russian oil imposed by the G7 nations have added further stress to the global energy markets.

Following the OPEC+ announcement in October, the White House went as far as to threaten a re-evaluation of the relationship between the US and Saudi Arabia.

“As for the relationship [with Riyadh] going forward, we’re reviewing a number of response options. We’re consulting closely with Congress,” US State Secretary Antony Blinken said on 6 October.

Biden also reportedly refused to meet with Saudi Crown Prince Mohammed bin Salman at the last G20 summit in Indonesia.

Meanwhile, Moscow said that it would be no longer delivering oil to Europe as a response to the price cap, while several OPEC ministers claim that such a policy would have no impact regardless, as Russia is selling most of its oil to the Asian markets.

Reuters also reported that the move by G7 members has rattled many OPEC+ member states, as the measures “could ultimately be used by the west against any producer.”