OPEC+ Leaves Oil Production Unchanged for November Amid Market Tightness

OPEC+ decided today to leave its oil production unchanged for November, aligning with market expectations that no further adjustments to output policy are likely before next year. CNBC reported that representatives from Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman reached the decision during a brief online meeting on Sunday. Their next meeting is scheduled for November 1.

Impact of Regional Conflict on Output

The volume of oil pumped by OPEC+ producers in the Persian Gulf remains well below their targets due to disruptions stemming from the war involving Iran. Export volumes in recent months have hovered between 60% and 80% of normal levels.

"OPEC+ kept its output caps unchanged, in line with market expectations. However, despite the rise in oil transport through the Strait of Hormuz, their production levels remain far below the allocated quota. As a result, the oil market remains tight," said UBS analyst Giovanni Staunovo.

Strategic Reserves and Price Pressures

Oil prices dropped on Friday after European leaders responded to a request from US President Donald Trump, agreeing to release 100 million barrels of diesel and crude oil from their strategic reserves over the next four months. A significant and concentrated portion of diesel will be released within the first 20 days. Despite this measure, the price of a barrel of Brent crude remained above 100 dollars, compared to approximately 73 dollars before the outbreak of the war involving Iran in late February.

Reuters reported last week that the uncertainty generated by the war has delayed the evaluation of the organization's production capacity—a crucial step for determining output quotas for 2027. OPEC+ had raised its production targets during most of the current year following years of output cuts, but most of the increases remained on paper due to the Middle East conflict.