OPEC+ Keeps Oil Output Targets Unchanged Amid Ongoing Conflict

OPEC+, the oil-producing group comprising OPEC and its allies, has agreed in principle to keep oil output targets unchanged in November. This decision comes after a meeting on Sunday, where the seven core members of the group discussed their production levels. The group's output capacity review, crucial for determining members' 2027 output quotas, has been delayed due to the ongoing US-Israeli war with Iran, which has disrupted exports and made it difficult to estimate future production potential.

The war has resulted in Gulf OPEC+ producers pumping below their target levels, with exports fluctuating at 60-80% of normal levels in recent months. The group had been raising output targets for much of 2026 after years of production cuts, but most of the increases remained on paper due to the conflict.

OPEC+ still has about 2 million barrels per day of output cuts in place covering most members. It needs a capacity review to decide how to distribute increases and any changes to output are unlikely before 2027. The seven core OPEC+ members meeting on Sunday are Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.