The OPEC+ alliance agreed to a slight increase in oil production quotas in December
3 November 04:06
Eight OPEC+ countries have agreed to a slight increase in their December oil production targets, saying they will pause the increase in quotas in the first quarter of next year.
Given the stable outlook for the global economy and favorable current market conditions, as evidenced by low oil inventories, the eight member countries decided to increase quotas by 137,000 barrels in December, the alliance said, "Komersant Ukrainian" reports.
After December, due to seasonality, eight countries, including Saudi Arabia, Russia, the UAE, Iraq, Kuwait, Oman, Kazakhstan and Algeria, decided to suspend production growth in January, February and March 2026, the report said.
Analyst George Leon of Rystad believes that sanctions against Russian producers have added a new level of uncertainty to supply forecasts, and the OPEC+ alliance realizes that overproduction could backfire in the future. By pausing, OPEC+ is protecting prices, demonstrating unity, and buying time to see how the sanctions will affect the Russian market.
The alliance also said that the gradual increase in production could be suspended or canceled depending on changing market conditions. This flexibility will allow the group to continue to maintain the stability of the oil market. Eight OPEC+ countries reported that the increase in quotas in December will allow member countries to accelerate the compensation of volumes.
From April to November, eight OPEC+ members increased their production quotas by more than 2.7 million barrels per day, which is about 2.5% of the global supply.
The next OPEC meeting will be held on November 30.
