OPEC+ Keeps Output Quotas Unchanged Amidst Disrupted Oil Exports
OPEC+ ministers have maintained their oil output quotas for October, but the decision marks a pause in production increases as the group shifts focus to reviewing members' oil production capacity.
The meeting of seven core OPEC+ members comes amidst ongoing disruptions to oil exports through the Strait of Hormuz due to the Iran conflict. This has weakened OPEC's influence over prices and market share.
OPEC+ still produces far below its targets, despite agreeing to a phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. The group needs to agree on new quotas before deciding its next output steps.
Rystad Energy's Jorge Leon noted that OPEC+ currently has 'very limited power over the physical oil market' due to the conflict, stating that the group can change production targets but cannot guarantee that those barrels will be produced or reach the market.