OPEC+ has agreed to keep its oil production targets for December 2023 unchanged during its online meeting scheduled for Sunday, which will include seven main members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman.
Maintaining Production Policies
This decision comes as oil producers in the Gulf region are trying to increase their exports, which have been disrupted by recent wars and tensions. Currently, most OPEC+ members are still producing oil below their assigned production quotas.
In September 2023, OPEC+ ended the gradual rollback of production cuts by 1.65 million barrels per day, but reports indicate that the group is still maintaining a reduction of about 2 million barrels per day, a policy that will continue until the end of 2026.
Future Plans of OPEC+
Given the current conditions, OPEC+ is also preparing for discussions regarding member production quotas for 2027. It is expected that in the fourth quarter of this year, a review of the production capacity of the members of this coalition will be finalized, and new bases for future production quotas will be established.
Therefore, the decision to maintain production targets at the current level reflects the continuation of the current production policy of this group. Meanwhile, OPEC+ members are preparing for next year's negotiations, and their main focus seems to be on discussions regarding the production quotas for 2027.
