KATHMANDU: The Organization of the Petroleum Exporting Countries (OPEC Plus) has decided not to change its oil production target for October 2026. In a virtual meeting held on Sunday, the seven major countries of the group agreed to maintain the September production level for October.
The decision comes at a time when the ongoing conflict in the Middle East and the disruption of oil exports through the Strait of Hormuz have raised concerns in the global oil market. After this decision, the price of crude oil increased in the international market on Monday.
What did the OPEC countries decide?
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman participated in the meeting, according to OPESK. These seven countries have decided to maintain the production target of September for October.
OPEC Plus has said that the seven countries will meet monthly to review the state of the global oil market and future projections. The next meeting will be on October 4.
How much oil does each country produce?
The production target for Shrus under the October production program will be 9.949 million barrels per day. Saudi Arabia’s target is 10.478 million barrels per day. The production targets for other countries are as follows:
Iraq: 4.431 million barrels per day
2.676 million barrels per day from Kuwait
Kazakhstan: 1.628 million barrels per day
Algeria: 1.007 million barrels per day
Oman: 8.41 million barrels per day
Decisions taken in the midst of the Hormuz crisis
In addition to compensated production, the combined production target for October for these seven countries will be about 31.01 million barrels per day. OPEC Plus has also reiterated its commitment to abide by the Comprehensive Production Agreement.
OPEC Plus’ decision comes at a time when the Iran war is disrupting the movement of oil through the world’s important oil shipping route through Hormuz.
At the beginning of August, OPEC Plus decided to increase oil production for September. With this, the group has completed a phased return of an additional 1.65 million barrels per day of production cuts implemented in 2023.
However, for most of the 21 OPEC Plus member countries, another production cut will apply by the end of 2026. Before withdrawing these cuts, the group will have to evaluate the actual production capacity of member countries. New production bases will then be set for 2027.
Crude oil prices rose on Monday following the OPEC Plus decision. Brent crude oil rose 1.47% to $97.70 a barrel in the morning. WTI crude oil also rose 1.49% to $92.84. -Agency
