OPEC+ Sticks with Oil Output Policy Amid Ongoing Iran Conflict
OPEC+ members gathered on Sunday and decided to maintain their oil output policy unchanged for October. This decision is significant given the ongoing conflict in Iran, which has disrupted oil exports through the Strait of Hormuz, limiting OPEC+'s influence over prices and market share.
The group, comprising seven core OPEC+ members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman - made this decision despite the agreed production increases. The group had rolled back a 1.65 million-barrel-per-day supply cut first implemented in 2023, but it still produces far below its targets due to the war.
Jorge Leon of Rystad Energy noted that OPEC+ currently has very limited power over the physical oil market. The group can change production targets on paper, but it cannot guarantee that those barrels will be produced or actually reach the market.