The Saudi-led OPEC oil cartel will decide on Sunday how much oil to supply to the global economy amid weakening demand from China and uncertainty over the impact of new Western sanctions against Russia that take effect on Monday.

Russia rejected the price cap approved on Friday and threatened to cut off supplies to countries that approved it. In response, Russia secretly assembled a fleet of more than 100 old oil tankers to help circumvent Western restrictions on the sale of Russian oil after its invasion of Ukraine, on opinion of shipping brokers and analysts.

The G7 countries, along with Australia, agreed on Friday to cap the price of Russian oil at $60 a barrel, in line with an agreement reached earlier by the 27 countries of the European Union, according to a joint statement quoted by AFP.

“The G7 and Australia (…) have reached a consensus on a maximum price of $60 per barrel for crude oil of Russian origin transported by sea,” said the document of these countries.

The deal was agreed on Thursday by the EU in coordination with G7 allies, notably the US and Britain, but Poland disagreed, demanding a lower ceiling, with some sources citing $30 a barrel. Ultimately, on Friday, Warsaw accepted a maximum price of $60 per barrel.

The measure, aimed at reducing Russia’s revenue in the context of its war against Ukraine, is in addition to a European embargo on imports of Russian oil by sea that comes into effect on Monday.

Specifically, with this ceiling, the EU prohibits European companies engaged in the delivery of Russian oil by sea (transport companies, insurance companies, etc.) from offering their services if the delivered oil exceeds the threshold of $60 per barrel.

The price of Russian oil is currently around $65 per barrel, so the measure will have limited impact on Russian oil exports, at least for now.

For a situation where the price of Russian oil falls below 60 dollars per barrel, the measure established by the EU involves setting a threshold of 5% below the market price, so that Russia does not decide to stop its oil. exports, thus disrupting the market and leading to higher oil prices, which will further affect Western economies through its consequences.