OPEC+ set to keep December oil output targets unchanged, focus shifts to 2027 quotas

New Delhi: OPEC+ oil-producing countries have agreed in principle to keep their December production targets unchanged, signalling a pause in output policy adjustments until next year as the group prepares to negotiate production quotas for 2027, Reuters reported on Sunday.

Three people familiar with the matter told the news agency that the understanding was reached ahead of Sunday's online meeting of seven key OPEC+ members -- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman. The sources declined to be identified, according to Reuters.

The meeting comes as Gulf producers continue to increase exports that had been disrupted for months by the Iran war. However, most of these countries are still producing below their assigned output targets because of the disruption, Reuters reported.

OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allied producers including Russia, completed the phased rollback of a 1.65 million barrels per day (bpd) production cut in September. The supply reduction had initially been agreed upon in 2023.

The group continues to maintain another layer of production cuts of around 2 million bpd, covering most members through the end of 2026, according to the agency.

The decision to keep December targets steady would be in line with expectations that the group will avoid further changes to its production policy during the fourth quarter and focus instead on setting output levels for 2027.

Reuters had reported in July that OPEC+ was likely to pause production target adjustments after September, with attention shifting towards negotiations over members' future quotas.

The group is also expected to complete a review of members' production capacities during the fourth quarter. The assessment will help determine the baseline levels for 2027, which will be used to allocate production quotas and shape plans for unwinding the remaining supply cuts, Reuters reported.