The group of member states of the Organisation of the Petroleum Exporting Countries (OPEC) and their allies has announced that it intends to maintain a stable market supply until the end of autumn. The decision signals continued cooperation within the group following the conclusion of the voluntary production reduction cycle.
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman decided in an online meeting to maintain production in November at the level set for September, at 31 million barrels per day. In September, this seven-nation group completed its voluntary supply reduction cycle and returned to the market 1.65 million barrels per day, the volume that had been exempted last year while the UAE was still a member of OPEC. The UAE left OPEC in early May.
The seven-nation group stated that it is "collectively ready to target full compliance with the Declaration of Cooperation". It also noted that it will continue to meet once a month to analyse market conditions.
The wider OPEC+ group should, according to the 2022 agreement, reduce production by approximately two million barrels per day by the end of the year. OPEC+ includes, alongside OPEC members, independent producers such as Russia.
Production has lagged behind agreed levels in recent months due to the US war with Iran and the blockade of the key export route through the Strait of Hormuz. On Friday, the group postponed its planned regular analysis of member capacities, which serves as the basis for determining production quotas for the following year.
