OPEC+ Holds Steady on Oil Output Amid Global Tensions

New Delhi – At a low‑key gathering on Sunday, the seven core OPEC+ members – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman – decided there was no rush to tweak their oil‑pump numbers for October. In plain English, they’re keeping the production line exactly where it is for now.

The group said they’ll draft a fresh quota agreement for each member before they lock in the next set of output targets. It’s a bit of a waiting game, but one that reflects the fragile balance of the global oil market.

Back in April and again in November 2023, the cartel rolled out a series of voluntary cuts to steady prices. This time, the seven signatories reaffirmed their “collective commitment” to the Declaration of Cooperation and pledged to meet monthly to scan market conditions. Their next rendez‑vous is pencilled in for October 4.

On August 2 the OPEC+ alliance approved a modest bump of about 188,000 barrels a day, a move that essentially restores the production limits that were dialed back earlier in 2023. Still, that uptick is unlikely to ripple through to global supplies – the Strait of Hormuz remains a choke point, with roughly 20 % of the world’s oil and gas passing through that narrow waterway.

Even if the official quotas rise, getting that extra crude to buyers isn’t a given. Russia, for example, is still wrestling with the fallout from Ukrainian drone strikes on its energy infrastructure. Its output hovers near 9 million barrels per day, short of the OPEC+ goal of about 9.8 million.

Adding to the uncertainty, the UAE walked out of OPEC+ in May after years of frustration over production cuts, leaving observers to wonder how long the remaining members can stay the course with coordinated limits. Meanwhile, oil prices have been nudging around $91.5 a barrel, reacting to fresh missile exchanges between the United States and Iran.