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OPEC+ set to keep October output policy unchanged at Sunday meeting
The decision comes as Iran-related export disruptions through the Strait of Hormuz have reduced OPEC+'s influence on prices and market share.
OPEC+ is expected to keep its oil output policy unchanged for October at a meeting on Sunday, according to three sources familiar with the matter cited by Reuters. The group is nearing completion of the unwinding of one layer of production cuts this month and is expected to shift attention to negotiating 2027 quota terms.
Reuters reports that the meeting will involve seven core OPEC+ members: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan, and Oman. The online session is expected to begin at 1100 GMT.
The sources said Iran-related disruptions to exports through the Strait of Hormuz are continuing, which has reduced OPEC+'s ability to influence prices and market share compared with past episodes. Supply decisions are also described as having less market impact than in prior years, amid ongoing export disruptions tied to the Iran war and the war in Ukraine.
OPEC+ this year has raised monthly production quotas for most members, but actual output has lagged planned increases due to those disruptions. The increase agreed in early August completes a phased rollback of a 1.65 million-barrel-per-day supply cut agreed in 2023, and the group still has another layer of production cuts in place for most members through the end of 2026, while reviewing members' capacity to set 2027 output baselines. DeGolyer and MacNaughton is expected to submit its capacity review report to OPEC at the end of September, potentially setting up difficult negotiations ahead of year-end baseline setting, Reuters added.