OPEC+ set to keep Dec oil output targets unchanged

OPEC+ oil-producing countries have decided to maintain their December production targets unchanged, according to Reuters. This decision signals a temporary pause in output policy adjustments until the group convenes to negotiate production quotas for 2027 next year. The news comes ahead of a virtual meeting of seven key members of OPEC+ - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.

Reuters spoke to three people familiar with the matter, who declined to be identified. The group had already completed a phased reduction of 1.65 million barrels per day (bpd) in September, a reduction that initially started in 2023. The group is currently still implementing another layer of cuts, amounting to around 2 million bpd, across most members until the end of 2026.

The decision to keep December production targets steady is expected to be in line with the group's plan not to make further changes to its production policy during the fourth quarter. Instead, their focus will be on establishing output levels for 2027. The group is also set to complete a review of members' production capacities during the fourth quarter, which will help determine baselines for 2027 and inform plans to unwind remaining supply cuts.