OPEC+ Keeps Oil Output Policy Unchanged Amid Disruptions and Cuts

OPEC+ is set to maintain its current oil output policy at an upcoming meeting on Sunday. The producer group has agreed to keep production levels unchanged, as it needs to agree on new quotas before deciding on future output steps.

The decision comes amid ongoing disruptions in oil exports through the Strait of Hormuz due to the Iran war. This has limited OPEC+'s influence over prices and market share, unlike in the past when its supply decisions had a significant impact on the market.

OPEC+ still produces far below its targets, despite agreeing to increase production in September as part of a phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. The group's output is further restricted by existing production cuts that cover most members until the end of 2026.

The review of members' oil production capacity to set 2027 output baselines, which form the basis for quotas, will likely take place later this year. This means OPEC+ may pause its output increases for the fourth quarter, as sources earlier told Reuters.