OPEC Puts Brakes on Output Review Amid Strait of Hormuz Disruptions

OPEC's plans to review oil production levels may be put on hold for November. Sources close to the organization indicate that the group is likely to maintain its current output quotas, despite actual supply being well below required levels due to disruptions caused by the Iran war.

The Gulf producers in OPEC+ have been struggling to meet their quotas, producing and exporting lower volumes since the conflict crippled traffic through the Strait of Hormuz. In fact, production at many of these states has been lagging behind the required levels since March, making the quotas 'almost irrelevant'.

OPEC's focus is now shifting towards debates about 2027 quotas, which will serve as a baseline for any future cuts. The organization has been raising nominal production quotas throughout this year, but actual supply has continued to fall short.