OPEC+ Stands Pat on Oil Output Amid Strait of Hormuz Disruptions
OPEC+ has maintained its oil output policy unchanged for October, despite ongoing disruptions to global markets due to the Iran conflict. The group's decision comes as the conflict continues to impact oil exports through the Strait of Hormuz, limiting OPEC+'s influence over prices and market share.
In August, OPEC+ agreed on a production boost for September, marking the final phase of a 1.65 million-barrel-per-day supply cut first implemented in 2023. However, despite this increase, the group still produces below its targets due to the ongoing conflict.
OPEC+ has another layer of production cuts in place until the end of 2026, covering most members of the 21-country group. The group needs to review members' oil production capacity before deciding how to unwind these cuts and return production to the market.