On December 4, OPEC decided to keep the current output level of around 31.5 million barrels per day despite oversupply on the global oil market.
On Monday, Brent and WTI benchmarks were at lows not seen since 2009. Brent crude was down below $37 a barrel while the US benchmark WTI fell below $35 per barrel.
Crude prices rebounded slightly in early trading on Tuesday with Brent trading at $37.73, and WTI at $36.18 per barrel as of 8:36am GMT.
OPEC produced 31.7 million barrels per day in November. It is the highest output in over three years and 1.7 million barrels per day over its former production limit.
OPEC’s biggest producer Saudi Arabia is refusing to cut crude output in order to defend its market share. Riyadh is hoping to squeeze out its competitors, primarily the US and Russia.
In a move that some see as Moscow calling Riyadh’s bluff, Russia’s Finance Ministry announced this week that it is drawing up plans based on the price of oil as low as $30 a barrel until 2022.
That scenario would have devastating implications for OPEC, according to Russia’s Deputy Finance Minister Maxim Oreshkin.