OPEC+ oil production remained unchanged in November 2023. Seven key members of the group, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, made decisions about production levels in an online meeting.
Fluctuation of Oil Exports in the Gulf
OPEC+ producers in the Gulf region continue to face disruptions in oil exports due to the U.S. and Israeli war against Iran. This situation has caused production in these countries to be significantly below set targets, with their exports fluctuating between 60 to 80 percent of normal levels in recent months.
G7 Leaders' Decision and Its Impact on Oil Prices
In response to rising oil price volatility and pressure on the global fuel market, G7 leaders announced a coordinated release of 100 million barrels from energy reserves. This action aims to prevent exacerbating price shocks and their impact on households and businesses. As a result of this decision, oil prices slightly decreased last Friday, but Brent oil prices remain above $100 per barrel, showing a significant increase compared to the $73 price before the war in February.
The war in Iran has also affected OPEC+ production capacity and delayed the assessment of member production capacity for 2027. Oil industry sources have stated that this war has created uncertainty regarding future production capacity estimates for members.
Oil Production and Upcoming OPEC+ Meeting
According to OPEC data, the seven main OPEC+ members produced an average of 25 million barrels of oil in August, which represents an increase of 630,000 barrels compared to July. However, this amount is still about five million barrels per day less than pre-war levels in February. The next meeting of this group to review production status and planning will be held on November 1 (10 Aban).
OPEC+ also continues to maintain a production cut of about 2 million barrels per day. The group requires the results of production capacity assessments for any changes in production levels, and according to sources, any changes before 2027 seem unlikely.
Read more: Utilizing Domestic Experts' Capabilities at Ilam Gas Refinery · Postponement of OPEC+ Meeting to Determine Oil Production Quotas for 2027
