OPEC+ held an online meeting on Sunday, which included participation from seven countries: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman, and kept its oil production targets for December 2023 unchanged. This decision comes as producers in the Gulf region seek to increase their exports. The oil exports of these countries have been affected since the onset of the military attack by the United States and the Israeli regime on Iran in February.
Production Below Quotas
Despite ongoing efforts by OPEC+ members to resume shipments, most members are still producing below their assigned quotas. This situation is due to existing constraints in the global market and the specific conditions of each country that prevent achieving full production capacity.
Read more: Bank Tejarat Prioritizes Financing for the Reconstruction of Damaged Petrochemicals
Voluntary Production Cuts
This group gradually ended the supply restriction of 1.65 million barrels per day that was imposed in the initial agreement of 2023 in September 2023. However, reports indicate that OPEC+ continues to maintain voluntary production cuts of approximately 2 million barrels per day. This decision includes the majority of members and is expected to continue until the end of 2026.
Negotiations on Production Quotas for 2027
OPEC+ is also preparing to negotiate production quotas for 2027. According to reports, the group is expected to finalize a review of its members' production capacity in the fourth quarter of this year. This action includes setting new baselines for future quotas and plans regarding the removal of remaining voluntary cuts.
Maintaining Production Targets in the Fourth Quarter
Given OPEC+'s focus on negotiations for the 2027 quotas, it is likely that the group will keep its production targets unchanged in the fourth quarter. Thus, the decision to maintain the December targets will stabilize the current production policy of the group as members prepare for next year's discussions.
Read more: OPEC+ Agreement on Keeping Oil Production Targets Steady in December · Aramco Turns to Protect Oil Exports to Singapore's Caves
