OPEC+ Sticks to Status Quo on Oil Output Amid Global Disruptions
OPEC+, a group of oil-producing countries led by Saudi Arabia and Russia, has decided to keep its oil output policy unchanged for October. The decision was made at a meeting on Sunday, where the seven core members of OPEC+ agreed not to change their production levels.
The Iran war continues to disrupt oil exports through the Strait of Hormuz, limiting OPEC+'s influence over prices and market share. Despite this, OPEC+ had previously agreed to increase its production in September as part of a phased rollback of a 1.65 million-barrel-per-day supply cut first implemented in 2023.
Jorge Leon of Rystad Energy noted that OPEC+ currently has 'very limited power over the physical oil market.' This is because the group cannot guarantee that increased production will actually reach the market due to ongoing disruptions.