The introduction of a price cap on Russian oil would lead to an explosive hike in fuel prices around the world, according to Ivan Abramov, first deputy chairman of the Russian Federation Council Committee on Economic Policy, speaking to Sputnik. 

On Friday, the G7 nations and Australia issued a statement saying that had come to an agreement on the maximum price cap of Russian crude oil: $60 per barrel, a decision which will come into effect on December 5 according to the joint statement. A price cap developed by the US-led international coalition will be implemented on February 5, 2023. 

"Consequences of such a decision are obvious: it will lead to a booming demand, disruptions of supply chains and the explosive growth of fuel prices across the globe," Abramov said. 

The European Union reached an agreement on setting a price cap on Russian oil at $60 a barrel, keeping a review mechanism to keep the price cap at 5% under market value. 

Major oil producers are expected to adhere to their current output strategy and even cut down oil production further in their coming meeting on Sunday amid falling oil prices, a coming Russian oil price cap, and sanctions.

The last time OPEC+ convened in October, a decision spearheaded by Saudi Arabia and Russia cut oil production by 2 million barrels per day starting November. 

The OPEC+ oil production reduction is the most substantial cut since the COVID-19 pandemic peak in 2020. 

In November, OPEC wrote in a report that "the world economy has entered a period of significant uncertainty and rising challenges in the fourth quarter of 2022.

Read next: US hails EU agreement on price cap on Russian oil at $60 per barrel