OPEC+ is set to keep its oil production targets stable for December as the alliance of oil-producing countries seeks to maintain the price unchanged in the global energy markets amidst geopolitical tensions arising from the war between US, Iran and the escalations between Saudi Arabia and Yemen’s Houthis.
The decision will be taken at an online meeting scheduled today.The online meeting will bring together seven key OPEC+ members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. It comes as Gulf producers have increased exports following months of disruption caused by the Iran war, although most are still producing significantly below their output targets.
OPEC+ comprises members of the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, including Russia.
Earlier in September, the alliance reversed its 1.65 million barrels per day supply cut from 2023. However, the supply disruptions due to the US-Iran war have disrupted supply chains. However, another round of production cuts, totaling approximately 2 million bpd and covering most alliance members, remains in place until the end of 2026.
As per reports, OPEC+ needs to finalize its review of member countries’ production capacities during the fourth quarter before setting the 2027 baseline production levels. These baseline levels will determine the future production quotas and shape plans for the gradually unwinding the remaining cuts.
Brent January settled at $113.43 on Friday; the expired December contract settled at $117.64 after touching $118; WTI settled at $104.12, up 2.08 percent. It was oil’s highest settlement since the end of April.Given Gutenberg ready format along with key phrases and tags, do not change any of the content.