OPEC+ keeps oil output targets unchanged for October

OPEC+ on Sunday decided to keep its oil production targets unchanged for October, as the group assesses the impact of ongoing conflicts in West Asia and disruptions to oil exports through the Strait of Hormuz.Seven OPEC+ members, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, took the decision at a virtual meeting on September 6. The countries had earlier announced additional voluntary production adjustments in April and November 2023."The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, met virtually on 6 September 2026 to review global market conditions and outlook," OPEC said."The seven participating countries decided to maintain September 2026 required production for October 2026," it added.Under the October production schedule, Russia's quota will remain at 9.949 million barrels per day, while Saudi Arabia's will be 10.478 million barrels per day.Iraq's production level has been set at 4.431 million barrels per day, followed by Kuwait at 2.676 million barrels per day, Kazakhstan at 1.628 million barrels per day, Algeria at 1.007 million barrels per day and Oman at 841,000 barrels per day.The combined October quota for the seven countries, excluding compensation volumes, will be 31.01 million barrels per day. The countries also reaffirmed their commitment to complying with the broader OPEC+ production agreement."The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation," OPEC said.The decision comes as the ongoing Iran war continues to disrupt oil exports through the Strait of Hormuz, a key global oil shipping route. The disruption has also reduced OPEC+'s ability to influence oil prices and market share.In August, OPEC+ agreed to increase production for September, completing a phased rollback of a 1.65 million-barrel-per-day supply cut introduced in 2023.However, the broader 21-member OPEC+ group still has another layer of production cuts in place for most members until the end of 2026. Before deciding how to unwind these cuts, the group needs to assess members' production capacity and set new baselines for 2027, which will determine future quotas, Reuters reported.The group is expected to consider its 2027 production framework later this year. Sources had earlier indicated that OPEC+ could pause output increases in the fourth quarter, although Sunday's statement did not provide guidance beyond October.OPEC+ said the seven countries will continue to meet every month to review market conditions and the outlook. The next meeting is scheduled for October 4.Get the latest Business News and Live updates. Download the TOI app.