In its latest action to manage the oil market, OPEC+ has reached a preliminary agreement to maintain oil production targets for December. Member countries of this oil-producing coalition, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, have decided to keep current production levels to prevent sudden changes in the market. This online meeting reflects the members' willingness to maintain production policies until next year.
Details of the Meeting and Preliminary Agreement
According to published reports, this meeting will take place on Sunday, with the aim of reviewing production targets for December 2023. This decision comes amid disruptions caused by the Iran war, which have negatively impacted the oil exports of Gulf countries. According to informed sources, this preliminary agreement signifies no change in production policy until the end of this year and focuses on negotiations for quotas in 2027.
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Changes in OPEC+ Production Policy
In September 2023, OPEC+ concluded a phase of supply reduction that included a daily cut of 262.3 million liters of oil. This phase of supply reduction, approved earlier this year, was aimed at stabilizing the market and preventing price volatility. However, the inability of Gulf producers to achieve their desired production levels due to disruptions from the Iran war has raised concerns.
This coalition still has another layer of production restrictions, equivalent to about 318 million liters per day, which covers its members until the end of 2026. Given the current conditions, OPEC+ seems to be seeking to maintain stability in the oil market and prevent severe price fluctuations.
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