OPEC+ agrees in principle to keep oil output targets steady in December, sources say

OPEC+ Agrees to Maintain Current Oil Output Targets for December 2024

OPEC+ Decision and Its Implications

By Ahmad Ghaddar, Olesya Astakhova and Alex Lawler

Agreement to Maintain Output Targets

LONDON/MOSCOW, Oct 31 (Reuters) - OPEC+ oil-producing countries have agreed in principle to keep their December oil output targets steady at a meeting on Sunday, three people with knowledge of the matter told Reuters, in line with expectations that further output policy adjustments won't occur until next year.

Details of the Online Meeting

Sunday's online meeting of seven core OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — comes as Gulf members have been boosting exports that have been disrupted for months by the Iran war. Most, however, are still pumping well below their output targets.

All three people declined to be identified. 

OPEC+ Structure and Recent Developments

OPEC+ comprises the Organization of the Petroleum Exporting Countries and allies including Russia. 

In September, OPEC+ completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. Disruption caused by the Iran war has meant Gulf producers are falling below their quotas.

Future Outlook and Quota Negotiations

Reuters reported in July that OPEC+ was likely to make no changes to its targets during the fourth quarter as it turns its focus to 2027 quota negotiations.

The group still has one more layer of production cuts of about 2 million bpd covering most members through the end of 2026.

Review of Production Capacity

OPEC+ needs to finalise a review of members' production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas and shape plans to unwind those cuts, sources have said.

(Editing by Jan Harvey and Peter Graff)