What the OPEC+ output cut and the G7 price restriction on Russian crude mean for India and the global oil market

India, which imports more than 80% of its energy requirements, will be keenly monitoring the global oil market in the coming weeks as volatility is anticipated to persist due to the impending implementation of sanctions on Russian oil.

The impending Organization of Petroleum Exporting Countries-plus (OPEC+) meeting on December 4 will provide additional market clues. The expected $60 per barrel cap on Russian seaborne crude oil imports by the European Union (EU) will have a significant impact on the trajectory of oil prices this month, this year, and in 2023. 

After Russia's invasion of Ukraine, Brent crude prices rose to a 14-year high of more than $139 a barrel. On Thursday, they were trading at about $88 a barrel, indicating a minor recovery from earlier in the week's close to one-year lows of about $80 a barrel.

The OPEC+ decision on Sunday, the proposed price ceiling on Russian oil that will go into effect on December 5, and developments in China—the world's largest consumer of crude oil—will all have an impact on how oil prices go over the next few weeks notwithstanding the price collapse.