OPEC+ agreed to keep its November oil production targets unchanged, with further output policy adjustments unlikely until next year as the group’s capacity review remains delayed by uncertainty over future production.
Seven core members, comprising Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, made the decision at an online meeting on Sunday.
Gulf OPEC+ producers have continued to pump below their output targets amid export disruptions linked to the US-Israeli war on Iran, with exports running at 60 per cent to 80 per cent of normal levels in recent months.
“ The OPEC+ group of seven kept their production ceilings unchanged, in line with market expectations. That said, despite rising flows through the Strait of Hormuz, their output levels remain well below quota,” said UBS analyst Giovanni Staunovo.
“Consequently, the oil market remains tight.”
Brent crude remains above US$100 a barrel despite falling on Friday after European leaders agreed to US President Donald Trump’s request to release diesel reserves. Prices were around US$73 a barrel before the Iran war began in late February.
The war has also delayed OPEC+’s capacity review, which is needed to determine members’ 2027 production quotas, as the conflict has created uncertainty over future production potential.
The seven members pumped 25 million barrels per day in August, up 630,000 bpd from July but still around 5 million bpd below pre-war levels, according to OPEC data.
OPEC+ still has about 2 million bpd of output cuts in place covering most members. Any changes to output are unlikely before 2027, according to sources.
The seven members will hold their next meeting on Nov 1.
A separate OPEC+ ministerial group, the Joint Ministerial Monitoring Committee, also met on Sunday to review the oil market.
Reuters
