OPEC+ Maintains Output Policy Amid Ongoing Geopolitical Tensions
OPEC+, the producer group comprising the Organization of the Petroleum Exporting Countries and its allies, is set to maintain its current oil output policy for October. The decision comes as geopolitical turmoil affects oil exports through the Strait of Hormuz, limiting OPEC+'s market dominance.
The group had increased production for September by reversing a portion of a 1.65-million-barrel-per-day supply cut implemented in 2023. However, despite this increase, OPEC+ still produces below its targets due to ongoing conflicts.
OPEC+ has additional output cuts in place for most members through the end of 2024, but these will not be lifted until production capacities are reassessed and new quotas are set for 2027. The group will halt output increases for the fourth quarter before making any further adjustments.