The Organization of the Petroleum Exporting Countries (OPEC) and its allies, OPEC+, will hold a meeting on Sunday (October 12) to review the status of oil production. According to obtained information, it is likely that the seven member countries of this coalition, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, will keep their oil production levels unchanged for November.
Current Oil Production Conditions
This meeting comes as Gulf countries are trying to increase their exports after months of disruptions due to the U.S. and Israeli regime's war against Iran. However, the oil production of most of these countries remains significantly below the set targets. The seven OPEC+ member countries have canceled voluntary supply cuts for most months of this year, but the trend of canceling supply will stop in October.
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The gradual cancellation of the daily supply cut of 1.65 million barrels by OPEC+ members, which was first agreed upon in 2023, ended in September. Estimates suggest that OPEC+ may halt the trend of canceling voluntary supply cuts in the fourth quarter of this year due to discussions about quotas for 2027.
Production and Capacity of OPEC+ Members
OPEC data shows that the seven member countries of this coalition produced a total of 25 million barrels of oil per day in August. This amount has increased by 630,000 barrels per day compared to July, but it is still about 5 million barrels per day less than the production level before the onset of the war against Iran in February.
OPEC+ still has another layer of production cuts of about 2 million barrels per day on its agenda, which includes the production of most members of this coalition and will continue until the end of 2026. Before determining the baseline production for 2027, which will serve as the basis for future country quotas, the organization must finalize the review of members' production capacity.
In this context, it is expected that the consulting firm DeGolyer and MacNaughton of the United States will soon release its report on the production capacity of members. Additionally, the meeting of the Joint Ministerial Monitoring Committee (JMMC) members will also be held on Sunday to review market conditions.
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