OPEC+ likely to keep production quotas unchanged for November
What's the story
The Organization of the Petroleum Exporting Countries (OPEC) and its allies are likely to keep oil production quotas unchanged for November. The decision comes as the Middle East conflict continues to disrupt output, with crude prices nearing $100 per barrel. A sub-group of seven countries led by Saudi Arabia and Russia plans to keep targets steady next month, delegates said ahead of a video conference today, where the agreement will be finalized.
Market impact
Oil prices nearing $100 mark
The decision to maintain production quotas comes as oil futures are on the verge of hitting the $100-a-barrel mark.
Diesel prices have also hit record highs amid the ongoing Middle East conflict, prompting Group of Seven nations to release emergency stocks.
The OPEC+ alliance had previously indicated a pause in production quota hikes until year-end after agreeing on modest increases over six months through August.
Conflict influence
OPEC production remains below pre-conflict levels
The Iran war has diminished the effect of any decisions made by the group, as production in major OPEC members like Saudi Arabia, Iraq, and Kuwait remains well below pre-conflict levels.
The alliance's next decision will be whether to restore another layer of output halted in 2022.
This complicated process is likely to be influenced by an ongoing audit of members' production capacity.
Policy meeting
Policy for next year to be finalized on November 29
The policy for next year will be finalized at a full ministerial meeting on November 29. This decision will shape the group's approach to production quotas and output levels in light of ongoing global events such as the Middle East conflict and its impact on oil prices.