Jonathan Raa | Nurphoto | Getty Images
In a widely anticipated move, OPEC+ oil-producing nations have decided to maintain their existing December oil output targets unchanged, according to three sources familiar with the matter who spoke to Reuters. This decision, reached during Sunday's virtual meeting, aligns with expectations that significant adjustments to oil output policy are unlikely before the new year.
The online gathering involved seven key OPEC+ members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. While Gulf members have seen increased exports following months of disruption from geopolitical conflicts, most continue to pump below their allocated output targets.
OPEC+, an alliance comprising the Organization of the Petroleum Exporting Countries and its allies, including Russia, had previously completed the phased rollback of a 1.65 million-barrel-per-day supply cut initiated in 2023. However, ongoing disruptions, particularly related to the Iran war, have resulted in Gulf producers failing to meet their quotas.
Sources indicated that OPEC+ is expected to maintain its targets throughout the fourth quarter, with its primary focus shifting towards upcoming 2027 quota negotiations. The group still has a layer of production cuts amounting to approximately 2 million barrels per day, which extends to most members through the end of 2026.
A crucial task for OPEC+ in the fourth quarter involves finalizing a review of members' production capacities. This review will be instrumental in setting the baselines for 2027, which will, in turn, dictate future quotas and strategies for unwinding current production cuts.
The decision comes as oil prices saw a significant surge on Friday, climbing over 2% to reach their highest levels since late April. This rise was fueled by trader concerns over a potential escalation in the war. Brent crude futures for December closed up $2.76, or 2.4%, at $117.64 a barrel, with the more active January contract gaining $2.63 to $113.43. U.S. West Texas Intermediate (WTI) crude futures also ended higher, up $2.12, or 2.08%, at $104.12.
