OPEC+ Keeps Output Policy Unchanged as Disruptions Limit Influence

OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, decided to keep its output policy unchanged for October. This decision was made at a meeting on Sunday, where the group reviewed its production targets.

The current output policy is based on a phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. However, despite this increase, OPEC+ still produces far below its targets due to ongoing conflicts and disruptions, including the Iran war.

Rystad Energy's Jorge Leon noted that OPEC+ currently has 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.