OPEC+ decided to keep oil production targets unchanged for November during a meeting held online on Sunday. This decision aligns with expectations that there will not be any significant changes to output policies until next year. The group includes seven core members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. These Gulf producers have been producing below their targets due to ongoing export challenges related to the US-Israeli conflict with Iran, with exports averaging only 60% to 80% of usual levels.
UBS analyst Giovanni Staunovo noted that the production ceilings were maintained as expected, but the actual output remains below quota. Despite some recent increases in oil flow, the market remains tight. Oil prices saw a decline after European leaders agreed to release diesel reserves at the request of US President Donald Trump; however, Brent crude oil is still over $100 a barrel, significantly higher than before the Iran conflict began.
The ongoing war in Iran has caused delays in reviewing output capacity, which is critical for determining production quotas for 2027. Current increases in output have largely not translated into actual production due to the conflict. OPEC+ members pumped 25 million barrels per day in August, still about 5 million barrels below prewar levels. The next OPEC+ meeting is scheduled for November 1, with 2 million barrels per day of output cuts still in effect.
With information from Reuters
