OPEC+ Holds November Oil Quota at 31.01 Million Barrels Daily
OPEC+ has decided to maintain its current oil production quota for November at 31.01 million barrels per day, matching the October level. This decision aligns with market expectations and follows the group's earlier moves to unwind production cuts aimed at addressing supply shortages from the Middle East.
Despite reports indicating that oil export flows through the Strait of Hormuz have returned to pre-war levels, OPEC+ production remains below the group’s own quotas. In August, the group’s output was significantly lower at 25 million barrels daily, highlighting the gap between planned and actual production.
Analysts note that while the Strait of Hormuz has seen increased oil flows, the discrepancy between production quotas and actual output suggests potential storage releases or higher export volumes. Giovanni Staunovo from UBS remarked that the oil market remains tight, despite the rising flows through the Strait of Hormuz.
According to Kpler data, the seven-day moving average for oil flows in the Middle East, including Hormuz, the Gulf of Oman, and Bab El-Mandeb, stood at 18.5 million barrels daily in the week ending October 1. This data underscores the complex dynamics at play in the global oil market.