OPEC+ plans to maintain steady oil production quotas for December, as Middle East conflict continues to limit output. Saudi Arabia and Russia lead the agreement to hold current targets, finalizing the decision in a Sunday video conference. This aligns with the group’s earlier roadmap.
Oil futures reached $118 a barrel in London last week amid fears of escalating conflict around Israel’s election and US midterms. However, physical markets show weakening demand, with crude shipments through the Strait of Hormuz returning to prewar levels. The group previously paused quota increases through year-end after modest hikes earlier this year, which were largely symbolic due to war-related disruptions.
These adjustments unwound 2023 cutbacks and may allow Gulf members to boost output once the conflict subsides. The next major decision involves restoring halted 2022 production, pending an ongoing audit of members’ capacity. Final policy for next year will be decided at the full ministerial meeting on Nov. 29.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing