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OPEC+ agreed at a meeting on Sunday to keep its November oil production target unchanged, in line with expectations that further production policy adjustments are unlikely until next year, producer groups said.
The seven core members of the group, which includes the Organization of the Petroleum Exporting Countries and allies including Russia, made the November decision in a brief online meeting on Sunday. The core members are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.
OPEC+ Gulf producers have been producing far below their production targets, with exports fluctuating between 60% and 80% of normal levels in recent months as exports continue to be disrupted by the U.S.-Israel war against Iran.
“OPEC+7 countries have left production caps unchanged, in line with market expectations. However, production levels remain well below quotas despite increased flows through the Strait of Hormuz,” said Giovanni Staunovo, an analyst at UBS.
“As a result, oil markets remain tight.”
Oil prices fell on Friday after European leaders agreed to US President Donald Trump’s request to release diesel stockpiles. Oil prices fell and settled after G7 countries announced they would release diesel and crude oil stocks to ease soaring fuel prices.
International benchmark Brent crude oil futures fell 6 cents to close at $102.25 per barrel, while U.S. West Texas Intermediate crude oil fell $1.76 to $91.11 per barrel.
In a joint statement, G-7 leaders said the group would release 100 million barrels of reserves over the next four months, with “a significant amount of diesel brought forward within the first 20 days.” The G7 includes France, Canada, Germany, Italy, Japan, the United Kingdom, and the United States.
Despite the G7 announcement, Brent crude oil prices remain above $100 a barrel, up from about $73 a barrel before the start of the Iran war in late February.
This year’s production increase was largely a theoretical theory.
The group’s capacity review – critical to determining member countries’ production allocations for 2027 – has also been delayed because the Iran war has made estimates of future production potential uncertain, industry sources told Reuters last week.
OPEC+ has raised most of its production targets for 2026 after years of production cuts, but most of the increases remained on paper due to conflicts in the Middle East.
OPEC data shows the seven core OPEC+ members pumped 25 million barrels a day in August, up 630,000 barrels a day from July but still about 5 million barrels below pre-war February levels.
The seven members will next meet on November 1st.
OPEC+ is still implementing production cuts of around 2 million barrels per day covering most member countries. A decision on how to allocate the production increase will require the results of a capacity review, and changes to production volumes are unlikely before 2027, the people said.
The Joint Ministerial Oversight Committee, another OPEC+ ministerial group that does not set policy, also met on Sunday to review the market.
— CNBC contributed to this report.
