A core group of seven Opec+ producers have agreed to keep their crude production quotas unchanged in November, as the US-Iran war continues to disrupt supplies from several members.
Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman said after their monthly virtual meeting on Sunday that they would roll over their October quotas into November.
Production in several Mideast Gulf countries has been severely affected by the war and disruptions to shipping through the strait of Hormuz and Bab el-Mandeb strait. This has left the Gulf members of the Opec+ alliance unable to meet their quotas, meaning today's decision is unlikely to affect production in the near term.
Opec+ production by members with quotas in August was still around 5.7mn b/d below the pre-war level in February, according to Argus estimates.
Although production has risen in recent months as more crude has made it through the southern Hormuz route, ongoing attacks on shipping and infrastructure remain a risk to regional output.
The seven producers said they would continue to meet monthly to assess market conditions, with their next meeting scheduled for 1 November.
The accompanying meeting of the Joint Ministerial Monitoring Committee (JMMC) reiterated the importance of safeguarding maritime routes and expressed concern over attacks on energy infrastructure. The JMMC said it would next meet on 29 November.
