OPEC Plans Another Oil Output Hike in November

The Organisation of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, are set to approve an oil production increase of at least 137,000 barrels per day at their upcoming meeting. This decision comes after OPEC+ reversed its cuts strategy and has already raised quotas by over 2.5 million barrels per day to boost the market. Despite falling oil prices from over $80 per barrel, they have stabilized between $60-$70, influenced by recent geopolitical events affecting Russian energy exports.

The Organisation of Petroleum Exporting Countries (OPEC) and its allies known as (OPEC+) will likely approve another oil production increase of at least 137,000 barrels per day at its meeting next Sunday, a Reuters report has said.

OPEC+ has reversed its strategy of output cuts from April and has already raised quotas by more than 2.5 million barrels per day, representing about 2.4 per cent of world demand, to boost the market.

Eight OPEC+ countries, including Nigeria, will hold an online meeting on October 5 to decide on November output. OPEC+ pumps about half of the world’s oil and includes Russia and other allies.

Oil prices have fallen from over $80 per barrel at the start of the year but have mostly traded in a narrow range of $60-$70 per barrel since OPEC began production increases in April. On Friday, prices rose to their highest since August 1, hitting levels above $70 per barrel, supported by Ukrainian drone attacks on Russia’s energy infrastructure which disrupted refining and shipments from one of the world’s biggest oil exporters.

The group’s total output reductions amounted at their peak to 5.85 million bpd, made up of three different elements – voluntary cuts of 2.2 million bpd, plus 1.65 million bpd by eight members, and another 2.0 million bpd by the whole group.

The eight producers plan to fully unwind one element of those cuts – 2.2 million bpd – by the end of September. For October, they started removing a second layer, of 1.65 million bpd, with an increase of 137,000 bpd.