Key OPEC+ countries have agreed to maintain current oil production quotas in December and not increase production through the end of 2026. The decision was made amid the war in the Middle East, which continues to constrain oil production in the region. Bloomberg reports, UNN writes.
Details
The agreement was reached during a videoconference on November 1, attended by seven alliance members led by Saudi Arabia and Russia.
The decision is in line with the previously agreed OPEC+ plan. Until August, the countries gradually increased production quotas over a six-month period, but later suspended the process.
How the decision will affect the oil market
Last week, oil futures in London rose to $118 per barrel. Investors were factoring in the risks of a new escalation in the Middle East ahead of the U.S. midterm elections.
OPEC+ agreed not to change oil production targets in November04.10.26, 15:09
At the same time, prices in the physical market are showing weakness, as oil supplies through the Strait of Hormuz have almost returned to pre-war levels.
According to Bloomberg, the previous increase in OPEC+ quotas was largely symbolic. Due to the war with Iran, the Gulf countries were unable to fully take advantage of the permission to increase production.
When will OPEC+ make its next decision
The alliance's next issue will be the possible resumption of part of the oil production restricted back in 2022.
The decision will be influenced by the results of an assessment of the member countries' production capacities, which will determine their ability to increase supplies.
OPEC+'s future policy for 2027 is planned to be coordinated at a ministerial meeting on November 29.
Oil prices fall amid rising exports from the Middle East and the G7 decision05.10.26, 12:06