OPEC+ Fails to Boost Output as Hormuz Disruptions Bite

OPEC+ has decided to keep its October oil production quotas unchanged from September, despite the ongoing disruption in the Strait of Hormuz. The decision was made by seven OPEC+ producers, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, at a meeting on Sunday (September 6).

The continued disruption through the Strait of Hormuz leaves oil markets exposed to sharp price swings, even with production targets held steady. Oil prices have extended their rally, with Brent crude trading above $95 per barrel due to concerns over Hormuz.

Jorge León of Rystad Energy noted that OPEC+ now has very limited influence over the physical oil market. He stated that the group could change production targets on paper but cannot guarantee that the corresponding volumes would be produced and delivered.