OPEC+ set to move ahead with oil output hikes

Eight members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have agreed to collectively increase their production by another 137,000 b/d in December.

IMAGE: OPEC logo. Getty Images

The eight OPEC+ members - Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman - met virtually on 2 November to review global market conditions.

Brent crude’s price has come under downward pressure following the OPEC+ announcement, amid growing fears of a supply glut in the global oil market.

This marks the group's eighth consecutive plan to boost production. However, it is much lower than the monthly increases of about 547,000 b/d announced earlier this year.

The coalition rolled out two sets of voluntary production cuts in 2023 – first trimming the output by 1.65 million b/d in April, then deepening the cuts by another 2.2 million b/d in November.

The group fully unwound the joint 2.2 million b/d cut in September, while yesterday’s announcement is part of easing the remaining 1.65 million b/d reduction, OPEC said.

“Beyond December, due to seasonality, the eight countries also decided to pause the production increments in January, February, and March 2026,” the oil producer added.

Separately, the Saudi Arabia-led group has another 2 million b/d output cut by the whole group in place until the end of 2026.

OPEC’s de-facto leader, Saudi Arabia, is now slated to produce around 10.1 million b/d in December – largely matching November’s figures. Russia will produce 9.6 million b/d, while Iraq and the UAE will produce 4.3 million b/d and 3.4 million b/d, respectively, the OPEC secretariat said.

The eight countries will meet again on 30 November “to review market conditions, conformity, and compensation,” according to the OPEC statement.

By Aparupa Mazumder

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