OPEC+ keeps December oil output targets steady ahead of tougher call for 2027

OPEC+ oil-producing nations maintained December production targets steady on Sunday, signaling that significant policy changes will not occur until next year. Seven core members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman - agreed to this decision during an online meeting. Despite Gulf countries boosting exports disrupted by the Iran war, most are still pumping far below their targets.

OPEC+ comprises OPEC and Russia, with only these seven members involved in monthly output decisions. The next crucial meeting is on November 29, where analysts anticipate the group will discuss 2027 quotas. This decision was deemed relatively easy, but the real test lies in the upcoming 2027 production framework discussion. Oil prices surged over 2% on Friday, reaching near $118 a barrel, the highest since April, as traders anticipated potential escalation in the Iran war following the US midterm elections.

Experts warn of excess supply in 2027 if Gulf flows return to normal, and OPEC+ faces a daunting task due to uncertainties surrounding the US-Iran war, the Strait of Hormuz, and the size of the surplus that could emerge.