OPEC+ set to keep production targets unchanged in December, source says

OPEC+ members have tentatively decided to keep their oil production levels steady for December, with the organization planning to defer any further supply adjustments until next year, according to Reuters. The consensus is set to be discussed during an online gathering on Sunday, involving seven primary members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, per the Reuters report.

The decision follows as Gulf producers strive to increase exports hampered for months by the Iran conflict. Despite efforts to resume shipments, most members are still outputting below their designated levels. OPEC+ concluded a phased elimination of a 1.65 million-barrel-per-day production cut in September, initially agreed in 2023, but maintains an additional reduction of approximately 2 million barrels per day, encompassing the majority of members until the end of 2026, Reuters reported.

The alliance is also getting ready to shift its attention to talks on 2027 production quotas. It is anticipated that OPEC+ will finalize a review of members’ production capacities during the fourth quarter, followed by establishing new benchmarks that will dictate future output quotas and plans to unwind the remaining cuts, as per Reuters.

The decision to keep December targets unchanged would therefore preserve the group’s current production strategy while members get ready for next year’s negotiations.