OPEC+ maintains production targets amid Middle East conflict supply constraints
Seven OPEC+ nations have decided to maintain their crude oil production targets for November at the same levels set in September. The group, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, reaffirmed their commitment to the Declaration of Cooperation during a virtual meeting. The move comes as ongoing conflict in the Middle East continues to disrupt supply from the Gulf region.
Under the decision, Saudi Arabia's required production for November is set at 10.478 million barrels per day (bpd), while Russia's target stands at 9.949 million bpd. Other countries have their own specific production quotas, with Iraq at 4.431 million bpd, Kuwait at 2.676 million, Kazakhstan at 1.628 million, Algeria at 1.007 million, and Oman at 841,000 bpd.
The Joint Ministerial Monitoring Committee (JMMC), which oversees compliance, noted overall conformity with production targets for July and August. The committee expressed concern over attacks on energy infrastructure, highlighting that repairing damaged assets is both costly and time-consuming, further impacting supply availability. The next JMMC meeting is scheduled for November 29.
Despite the formal quota adjustments, actual output from key producers like Saudi Arabia, Iraq, and Kuwait remains below pre-conflict levels, limiting the practical impact of the decisions. Oil futures have been trending toward $100 a barrel amid disruptions from the Iran war, with Group of Seven countries announcing a release of up to 100 million barrels of emergency stocks.