OPEC+ oil-producing countries agreed in principle to keep their December oil output targets steady during a meeting on Sunday, according to three sources with knowledge of the matter cited by Reuters. The decision aligns with expectations that no further adjustments to output policy will happen until next year.
Sunday Meeting and Export Context
The online gathering on Sunday brought together seven core OPEC+ members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. The meeting took place as Gulf members increase exports that had experienced months of disruption due to the war with Iran, although most producers continue to pump well below their designated output targets.
OPEC+ includes the Organization of the Petroleum Exporting Countries alongside allies such as Russia. Earlier in September, the coalition completed the phased rollback of a 1.65 million-barrel-per-day supply cut originally agreed upon in 2023. Due to the disruptions stemming from the Iran war, Gulf producers have fallen short of their quotas.
Future Quota Plans and Market Reaction
Reuters previously reported in July that OPEC+ was unlikely to alter its targets during the fourth quarter while shifting attention toward quota negotiations for 2027. The alliance maintains another layer of production cuts amounting to approximately 2 million barrels per day, which covers most members through the end of 2026.
Before establishing the 2027 baselines that will dictate future quotas and plans for unwinding current cuts, OPEC+ must complete a review of member production capacities during the fourth quarter. Meanwhile, oil prices jumped more than 2% on Friday, reaching their highest settlement levels since late April as market traders anticipated a potential escalation in the conflict.
December Brent crude futures, which expired on Friday, climbed $2.76 or 2.4% to close at $117.64 a barrel after reaching a peak of $118, while the more active January contract rose $2.63 to $113.43. At the same time, U.S. West Texas Intermediate crude futures finished up $2.12 or 2.08% at $104.12.
