OPEC+ Keeps Oil Output Unchanged Amid Iran Disruptions

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, kept its oil output policy unchanged for October at a meeting on Sunday. This decision comes as the Iran war continues to disrupt oil exports through the Strait of Hormuz, limiting OPEC+'s influence over prices and market share.

In August, OPEC+ agreed to increase production by 1.65 million barrels per day in September, completing a phased rollback of supply cuts first implemented in 2023. However, despite these increases, OPEC+ still produces far below its targets due to the ongoing conflict.

Jorge Leon of Rystad Energy noted that 'OPEC+ currently has very limited power over the physical oil market.' The group can change production targets on paper but cannot guarantee that those barrels will be produced or reach the market.