OPEC+ Abandons October Output Hike Amid Persistent Supply Disruptions

OPEC+, comprising the Organization of Petroleum Exporting Countries (OPEC) and non-member producers like Russia, held its latest meeting online on October 6. For the first time in seven months, the group decided against increasing oil production quotas for October.

The voluntary countries, which had raised their daily production quotas every month since April, opted to maintain the same quota as September. This decision underscores the persistent difficulty Gulf producers face in ramping up production due to disruptions caused by ongoing fighting involving Iran and the blockade of the Strait of Hormuz.

OPEC+ has indicated it will continue coordinated production cuts through the end of this year. However, member nations are seeking larger quotas to boost revenues, causing cracks to emerge within the group's unity. The United Arab Emirates (UAE) withdrew from OPEC in May, while Venezuela and Iraq have been demanding an expansion of their production quotas.