OPEC (Organization of the Petroleum Exporting Countries) is expected to generally agree to keep its oil production quota unchanged for December during an online meeting scheduled for Sunday. The seven main members of this coalition, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, will participate in this meeting. This decision seems to align with market expectations regarding OPEC+ refraining from further changes to its production policy until next year.
Continued Oil Production Issues
In recent months, Gulf Cooperation Council countries have attempted to increase their oil exports, but regional conflicts and especially disruptions caused by tensions with Iran have posed serious challenges to these efforts. According to reports, many of these countries are still producing below their designated quotas.
OPEC+, which includes OPEC and its allies such as Russia, gradually ended the daily supply reduction of 1.65 million barrels that was first agreed upon in 2023 last September. However, issues arising from international tensions have prevented Gulf producers from reaching their designated quotas.
Future Plans of OPEC+
According to previous reports, OPEC+ expects to make no changes to its production quota in the fourth quarter of the year and will focus on negotiations regarding the quotas for 2027. This coalition will also maintain another production cut of about two million barrels per day for most members until the end of 2026.
Informed sources have indicated that OPEC+ must finalize its assessment of its members' production capacity in the fourth quarter before determining the basis for the 2027 quotas. This basis will specify future quotas and the coalition's plan for gradually phasing out remaining production cut programs.
Impacts on the Oil Market
In the oil market, prices rose more than two percent on Friday, reaching their highest level since the end of April. Brent crude for December delivery, which expired on Friday, closed up $2.76, or 2.4 percent, at $117.64 per barrel. The price of this benchmark also reached $118 during trading. January Brent crude contracts also increased by $2.63 to $113.43. West Texas Intermediate crude oil was traded at $104.12 per barrel, up $2.12, or 2.08 percent.
