Vienna: The OPEC+ oil production group is set to keep its output rate steady after completing the staggered rollback of 1.65 million barrel per day (bpd) that was agreed in 2023. In August, the producers group agreed to boost production for September, currently averaging 188,000 bpd at baseline across the board. The news emerged after a meeting on Sunday at the group's headquarters in Vienna.
OPEC+ is a made up of 11 of the original 12 members of OPEC such as Saudi Arabia and Iraq, as well as 10 other partner members including Russia, Azerbaijan and Mexico. The US is not a part of OPEC despite being the largest oil producer in the world but it has outsize influence within the organisation because of its close alliances with several key members such as Saudi Arabia and Kuwait.
The meeting on Sunday comes as the Iran war continues disrupting exports through the Strait of Hormuz, limiting the influence of key members who are also among the largest producers. The decrease in transit from Saudi Arabia, Kuwait and Iraq has played havoc with oil markets and pushed prices to near USD 100 perbarrel. Unlike in the past, the group's supply decisions have had a limited impact on the market and the group says it is currently producing far below its targets because of the war.
OPEC+ still has another layer of production cuts in place, covering most members of the 21 country group until the end of 2026. Before the group decides how to review cuts and return production to the market, it needs to test oil production capacity to set 2027 output baselines, which form the basis for quotas.
