OPEC+ Sticks with Status Quo Amid Ongoing Iran Conflict

OPEC+ has decided to maintain its oil output policy unchanged for October. This decision comes as the group faces limitations in influencing prices and market share due to the ongoing Iran war, which is disrupting oil exports through the Strait of Hormuz.

Despite agreeing to a production boost for September, OPEC+ still produces far below its targets. The group has another layer of production cuts in place until the end of 2026, covering most members. Before deciding how to unwind these cuts and return production to the market, OPEC+ needs to review members' oil production capacity to set 2027 output baselines.

Jorge Leon of Rystad Energy stated that 'OPEC+ currently has very limited power over the physical oil market.' The group can change production targets on paper but cannot guarantee those barrels will be produced or reach the market. Oil prices have climbed more than 7% for the week after the US and Iran resumed military exchanges, with Brent crude futures gaining 76 cents to close at $96.28 a barrel on Friday.