OPEC+ has decided to maintain its current oil production levels in October, ending a six-month period of planned output increases.
The decision was reached during a virtual meeting involving seven key members of the alliance: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.
The group said it would keep its production policy unchanged as members prepare to determine new production baselines and quotas for 2027.
The decision comes as the ongoing conflict involving Iran continues to disrupt oil shipments through the Strait of Hormuz, a major route for global crude supplies.
The disruptions have reduced the impact that OPEC+ production adjustments can have on the physical oil market, as the volume of crude reaching consumers is increasingly affected by shipping and regional security challenges.
Oil prices remained high on Sunday, with Brent crude trading at $96.28 per barrel and West Texas Intermediate at $91.48.
OPEC+ had approved an increase in production for September as part of a phased reversal of a 1.65 million-barrel-per-day cut introduced in 2023.
However, actual production by members remains below their official targets, meaning the previously announced increases have not resulted in an equivalent rise in physical supply.
Jorge Leon of Rystad Energy said the alliance currently has limited influence over the physical oil market because production targets do not guarantee that the approved volumes will actually be produced and delivered.
The 21-member OPEC+ alliance still has another layer of production cuts affecting most of its members through the end of 2026.
Before deciding how quickly those cuts should be removed, members are expected to assess their production capacity and establish new baseline levels for 2027. These baselines will be used to determine individual production quotas.
Discussions on the new quotas are expected later this year, increasing the possibility that OPEC+ could keep production increases on hold during the fourth quarter.
The group also reaffirmed its commitment to achieving full compliance with the Declaration of Cooperation.
