OPEC+ Sticks to December Oil Output Goals Amid Conflict
OPEC+ oil-producing countries were poised to maintain oil production targets for December during a meeting on Sunday, as the coalition grapples with export disruptions stemming from the US-Iran conflict. The seven core OPEC+ members have reached a preliminary agreement to maintain output levels for the upcoming month, according to sources. This decision aligns with the prevailing expectations that any further policy adjustments will be deferred until next year.
Sunday’s online meeting of the seven countries – Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman – occurs as Gulf members have been increasing exports that have faced disruptions for months due to the ongoing conflict. Most, however, are still operating significantly below their targets. OPEC+ consists of the Organization of the Petroleum Exporting Countries along with its allies, notably Russia. The group has been increasing output targets for a significant portion of 2026 and in September finalised the gradual reduction of a 1.65 million-barrel-per-day supply cut initially established in 2023. At previous meetings, it maintained the targets unchanged for October and November.
Source reported in July that OPEC+ was likely to maintain its targets during the fourth quarter as it shifts its attention to the negotiations regarding quotas for 2027. The group retains an additional layer of production cuts amounting to approximately 2 million barrels per day, which will encompass the majority of its members until the conclusion of 2026. OPEC+ must finalise an assessment of the production capacity of its members in the fourth quarter prior to establishing the 2027 baselines, which will dictate future quotas and influence strategies for unwinding those reductions, sources have indicated.
