OPEC+ Keeps Oil Quotas Unchanged Amid Ongoing Iran Conflict

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, has decided to keep its oil production quotas unchanged for October. The decision was made during a monthly video conference on Sunday, where a sub-group of seven countries agreed to maintain targets steady despite the ongoing Iran war.

The conflict has severely reduced oil exports from Persian Gulf nations, with many relying on alternative pipeline routes and covert shuttle runs to prop up flows. However, OPEC+ continued to raise quotas during the war to complete the reversal of output curbs made in 2023, potentially giving some members extra leeway to bolster output once the fighting subsides.

Jorge Leon, head of geopolitical analysis at Rystad Energy, noted that 'OPEC+ is 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, shifting the group's focus from managing constrained exports to confronting a mounting surplus.