OPEC+ agrees to keep Nov oil output targets steady
LONDON/MOSCOW: OPEC+ agreed to keep oil production targets steady for November at a meeting on Sunday, the producer group said, in line with expectations that further output policy adjustments are unlikely until next year. Seven core members of the group comprising the Organization of the Petroleum Exporting Countries and allies including Russia made the decision for November in a brief online…
OPEC+ has decided to maintain its oil production targets steady for November, according to a meeting held on Sunday. The decision was made by the core members of the producer group, which includes Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. These seven nations made the announcement following a brief online meeting.
Trade disruptions stemming from the US-Israeli conflict with Iran have led to Gulf OPEC+ producers pumping well below output targets. In recent months, exports have fluctuated between 60 and 80 percent of normal levels. Giovanni Staunovo, an analyst at UBS, stated that despite increased flows through the Strait of Hormuz, the countries' output levels remain significantly below their quotas. Consequently, the oil market continues to be tight.
Brent crude prices experienced a drop on Friday after European leaders agreed to release diesel reserves following US President Donald Trump's request. However, Brent crude prices are still above USD100 per barrel, up from around USD73 before the Iran war began in late February. Output hikes have been largely on paper this year due to the ongoing conflict.
The group's output capacity review, which is crucial for determining members' 2027 output quotas, has been delayed because it has thrown future production potential estimates into uncertainty.
The seven core OPEC+ members produced 25 million barrels per day in August, a 630,000 bpd increase from the previous month. Yet, this output level is still roughly 5 million bpd below prewar levels in February, as per OPEC data. The next meeting of the core members is scheduled for November 1. Currently, OPEC+ has about 2 million bpd of output cuts in place, covering most members.
The group needs the outcome of the capacity review to decide how to distribute increases and any changes to output are unlikely before 2027, according to industry sources. A separate OPEC+ ministerial group, the Joint Ministerial Monitoring Committee (JMMC), also met on Sunday to review the market.
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