During a recent meeting, OPEC+ confirmed that it would not change its oil output policy for October, as the group awaits further discussions on production quotas before making any adjustments. The meeting included key members such as Saudi Arabia and Russia, and comes amid ongoing disruptions in oil exports through the Strait of Hormuz due to the Iran conflict.
Despite a previous agreement to increase production in September, OPEC+ continues to produce below its targets, primarily because of these geopolitical tensions. Jorge Leon from Rystad Energy noted that OPEC+ has limited power over the physical oil market, as it can set production targets but cannot ensure that these volumes will actually be produced or reach the market.
The group is also facing a significant decision regarding production cuts that are in place until the end of 2026, with future discussions on output baselines for 2027 expected to take place later in 2026.
Oil prices have reacted to the ongoing conflict, with Brent crude futures rising to $96.28 a barrel and West Texas Intermediate crude settling at $91.48, reflecting a notable increase over the week. The next meeting of the seven core OPEC+ members is scheduled for October 4, where further developments may be discussed