OPEC+ Agrees to Hold Oil Production Steady

OPEC+ member states agreed on Sunday not to change production levels next month, saying they must first agree on new quotas before deciding on production policy.

The seven key OPEC+ members (Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman) made the decision at a time when the war in Iran continues to disrupt commodity shipments through the Strait of Hormuz, limiting OPEC+'s influence on prices and its market share. The OPEC+ group consists of member states of OPEC and other major producers, led by Russia.

In early August, key OPEC+ members agreed to increase production for September, the same step they had taken in previous months. However, OPEC+ production remains lower than originally planned, due to the ongoing war in the Middle East, which is complicating oil exports from the region.

“OPEC+ currently has ​very limited power over the physical oil market”, said Jorge Leon of Rystad Energy. “The group ​can change production targets on paper, but it cannot guarantee that those barrels will be produced or ‌actually ⁠reach the market”, he added.

The next meeting of key OPEC+ members will take place on 4 October.

(Reuters, sak)