The OPEC+ alliance stated in a statement that its seven main members, including Saudi Arabia, Iraq, Kuwait, Oman, Algeria, Russia, and Kazakhstan, have decided in their recent meeting to maintain the oil production level for December 2026 at the same level set for September 2026. This meeting was dedicated to reviewing the conditions and outlook of the global market.
A Look at Production Cuts and Capacities
In September 2023, the OPEC+ alliance concluded the voluntary production cut of 1.65 million barrels per day. However, the production cut of 2 million barrels per day agreed upon in 2022 will continue until the end of this calendar year. The alliance is also reviewing the production capacities of its members to determine the production quotas for 2027.
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The production target for these seven countries for December 2023 is set at approximately 31 million barrels per day, which has not changed compared to September, October, and November. Saudi Arabia, with a daily quota of 10.478 million barrels, is the largest producer among OPEC+ members. Following Saudi Arabia are Russia with 9.949 million barrels and Iraq with 4.431 million barrels.
Impact of War on Oil Production
Most members of this alliance are producing less oil than their designated quotas due to the ongoing war in the Middle East. The aggressive war by the United States and the Israeli regime against Iran, which began on February 28 (9 Esfand 1404), has had significant impacts on the oil market. The Strait of Hormuz, through which about one-fifth of the world's crude oil and liquefied natural gas passes, has effectively been closed by Tehran, affecting oil prices.
This war has now entered its ninth month, and there is no clear prospect for its end. Concerns are rising about the possibility of renewed U.S. attacks following the midterm elections in that country. While former U.S. President Donald Trump has claimed that the war "will end soon," the oil market is being affected by these developments.
Oil prices last week rose by more than 2% to the highest level in six months, and this price increase has continued for the fourth consecutive month. As of the writing of this article, Brent crude oil is trading at $113.4 per barrel, and West Texas Intermediate oil is priced at $104 per barrel.
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