Opec+ agrees in principle to keep oil output targets steady in December, sources say

Opec+ oil-producing nations, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, have agreed in principle to maintain their December oil output targets steady at a meeting on November 1, according to three sources familiar with the matter. The decision aligns with expectations that significant output adjustments will not be made until 2027.

The meeting, which took place online, featured seven core Opec+ members, as Gulf producers have been increasing exports amidst the ongoing Iran conflict, which has disrupted supply. However, most members are still producing below their output quotas. In September, Opec+ completed the phased rollback of a 1.65 million-barrel-per-day supply cut initially agreed upon in 2023.

Reuters reported in July that the group was unlikely to alter its targets during the fourth quarter, focusing instead on 2027 quota negotiations. The group has one more layer of production cuts, approximately two million barrels per day, covering most members through the end of 2026. Before setting 2027 baselines that will determine future quotas and guide plans to unwind the current cuts, Opec+ must finalize a review of members' production capacity during the fourth quarter.