Seven OPEC+ countries agree to maintain current oil production target for next month

(Johannesburg = Yonhap News) Correspondent Na Gwan-jin = It has been reported that the Organization of the Petroleum Exporting Countries (OPEC) and the seven countries of OPEC+, a group of major oil producing countries, have agreed in principle to maintain their oil production target for next month at the current level.

According to Reuters and Bloomberg News on the 4th (local time), seven countries, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, will hold a video conference today to discuss oil production targets for next month.

Reuters, citing three sources familiar with the matter, said OPEC+ had agreed in principle to maintain its November oil production target at the current level. Bloomberg also predicted that next month's oil production target will be maintained.

OPEC+ has been raising its production targets for most of this year after years of production cuts.

However, due to the conflict in the Middle East, most of the increased production did not lead to actual production and in fact only increased production on paper.

In particular, OPEC+ oil-producing countries in the Gulf region are producing crude oil far below their production targets as export disruptions continue due to the war between the United States, Israel, and Iran. In recent months, crude oil exports from these countries have fluctuated between 60 and 80 percent of normal levels, Reuters reported.

According to OPEC data, the seven core OPEC+ countries produced 25 million barrels per day in August. This is an increase of 630,000 barrels per day from July, but is still about 5 million barrels per day less than the pre-war level in February.

OPEC+'s production capacity review to determine production quotas for next year is also being delayed. This is because the outlook for future production potential has become uncertain due to the war.

For this reason, it will be difficult to make any real changes to production before 2027, sources said.