OPEC+ set to keep December oil output targets unchanged, focus shifts to 2027 quotas

OPEC+ oil-producing nations have tentatively agreed to maintain their December production targets unchanged, indicating a temporary halt in output policy changes until next year, as the group prepares to discuss production quotas for 2027, according to Reuters. Seven key members, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, are set to deliberate on these matters during an online meeting on Sunday.

The sources cited by the news agency did not wish to be identified. Despite increasing exports following the end of the Iran war disruptions, most OPEC+ countries are still producing below their assigned output levels, as reported by Reuters. OPEC+, comprising the Organization of the Petroleum Exporting Countries and allied producers like Russia, completed a phased reduction of a 1.65 million barrels per day (bpd) production cut in September, which was originally agreed upon in 2023.

The group continues to enforce a secondary layer of cuts estimated at around 2 million bpd, covering all members until the end of 2026. By keeping the December targets steady, OPEC+ appears to be in line with expectations of avoiding additional adjustments during the fourth quarter and focusing instead on setting output levels for 2027.

Reuters had previously reported in July that the group was likely to pause production target adjustments after September, shifting focus towards negotiations over members' future quotas. Additionally, OPEC+ is expected to complete a review of members' production capacities during the fourth quarter, which will help determine baseline levels for 2027 and allocate production quotas, paving the way for unwinding remaining supply cuts.