Seven OPEC+ countries keep December oil output targets unchanged

Seven OPEC+ oil producers agreed at a virtual meeting on Sunday 1 November to keep their required crude production for December at the same level as in September, according to a statement published by OPEC.

The decision. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, the countries that announced extra voluntary cuts in April and November 2023, “decided to maintain September 2026 required production for December 2026”, the statement said. The seven countries “reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation” and will keep meeting monthly. Their next meeting is on 29 November. The statement did not announce any further output changes.

The targets. The combined target for the seven countries is about 31 million barrels a day, unchanged from September, October and November, The National reported. Saudi Arabia has the largest allocation at 10.478 million barrels a day, followed by Russia at 9.949 million and Iraq at 4.431 million, with Kuwait at 2.676 million, Kazakhstan at 1.628 million, Algeria at 1.007 million and Oman at 841,000, according to The National. It reported that most members are producing below their targets because of the war in the region. The group finished unwinding 1.65 million barrels a day of voluntary 2023 cuts in September and is keeping a further 2 million barrels a day of cuts agreed in 2022 in place until the end of the year, The National reported.

Market background. Brent crude settled 2.4% higher at US$117.64 a barrel on Friday 30 October, a fourth consecutive monthly gain, and US West Texas Intermediate settled at US$104.12, according to The National. Shipping through the Strait of Hormuz, which carried about a fifth of the world’s crude oil and liquefied natural gas, has been “effectively shut” since fighting between the United States and Iran began on 28 February, The National reported.

See also: Friday’s moves in gold, silver and oil.