OPEC+ Holds Quotas Steady Amid Ongoing Iran Conflict

OPEC+ has decided to keep oil production quotas unchanged for October amid ongoing hostilities between the US and Iran, which have severely reduced oil exports from Persian Gulf nations.

The decision was made by a sub-group of seven countries led by Saudi Arabia and Russia during their monthly video conference on Sunday. This move is in line with the group's roadmap to hold targets flat until the end of the year.

Jorge Leon, head of geopolitical analysis at Rystad Energy, noted that OPEC+ is currently 'moving barrels on paper rather than in the physical market.' He added that the real impact will come if and when the Strait of Hormuz fully reopens, which could lead to a mounting surplus.

The US-Iran conflict has forced several Persian Gulf nations to use alternative pipeline routes and covert shuttle runs to prop up oil exports. Despite this, OPEC+ is raising quotas to nominally complete the reversal of output curbs made in 2023.