OPEC+ members have agreed in principle to keep their December oil production targets unchanged. The alliance is expected to hold off on further supply policy changes until next year and to turn to 2027 quota talks.
OPEC+ members have agreed in principle to maintain their December oil production targets, Reuters reported on Saturday, citing three people familiar with the matter. The alliance is expected to hold off on further supply policy changes until next year.
Seven core members are expected to discuss the agreement at an online meeting on Sunday: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman. The decision comes as Gulf producers work to boost exports that have been disrupted for months by the war involving Iran.
Cuts remain in place through 2026
Most members are still producing below their assigned targets despite efforts to restore shipments. OPEC+ completed the phased unwinding of a 1.65 million-barrel-per-day production cut in September, which was first agreed in 2023.
However, the group continues to maintain another layer of reductions totalling around 2 million bpd, covering most members through the end of 2026, Reuters reported.
Focus shifts to 2027 quotas
The alliance is also preparing to shift its focus towards negotiations over production quotas for 2027. According to Reuters, OPEC+ is expected to finalise a review of members' production capacity during the fourth quarter before establishing new baselines that will determine future output quotas and plans to unwind the remaining cuts.
Reuters had reported in July that OPEC+ was likely to leave its production targets unchanged throughout the fourth quarter as it turned its attention to the 2027 quota discussions. Holding December targets would preserve the group's current production policy while members prepare for next year's negotiations.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
