Opec+ Delays Oil Capacity Review Amid Iran War Disruptions

Opec+, the oil-producing alliance that includes major countries such as Saudi Arabia and Russia, has delayed its review of member production capacity due to disruptions caused by the US-Israeli war on Iran.

The review, which was initially set to be completed by the end of September 2026, will now likely finish in mid-November. This delay is attributed to projects being delayed or canceled across the Middle East, affecting estimates of future production potential.

The Opec+ capacity review is crucial for determining members' oil output quotas in 2027. The alliance's production capacity estimates are used to set individual country quotas, with those that have expanded their capacity potentially seeking higher allocations and countries whose assessed capacity is lower facing pressure for lower quotas.

The UAE left the Opec+ alliance in May, citing a desire for a higher quota to reflect its rising production capacity. Iraq has also considered leaving Opec due to similar concerns.