OPEC+ agrees to keep November oil output targets steady

Dubai: OPEC+ has decided to maintain its oil production targets for November as ongoing conflict in the Middle East continues to hinder production from key Gulf producers. The decision by Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman was expected and suggests the group will not alter its output policy before 2027, according to reports from Reuters and Bloomberg.

Brent crude prices are currently trading above $100 a barrel, up from around $73 before the Iran war began in late February. Gulf output, however, is producing around 60 to 80 percent of its normal levels due to the conflict disrupting supply. In August, the seven core OPEC+ members produced about 25 million barrels per day, a 630,000 barrel increase from July but still 5 million barrels below their pre-war production level in February.

Despite these increases, Gulf producers remain far below their pre-war output levels, leaving the oil market tight. OPEC+ has been gradually increasing production targets since previous years of supply cuts, but the conflict has prevented Gulf producers from reaching their previous production capacities. The group is still holding around 2 million barrels per day in output cuts across most members.

The next major question for OPEC+ is assessing each member's production capacity, a review delayed due to the conflict's impact on production. As a result, changes to output are unlikely before 2027. Oil prices remain volatile, with Brent crude above $100 a barrel and diesel prices surging, prompting emergency stock releases by the Group of Seven nations.

The seven core OPEC+ members will meet online on November 1 to discuss December's production plans, with a full ministerial meeting on November 29 to address the production policy for the following year.