OPEC Plus (OPEC+) Freezes November Oil Output Amid Disruptions to Middle Eastern Crude Exports

[Financial News]  OPEC+, an alliance comprising the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries, has agreed to keep its oil production unchanged in November.
The decision came as disruptions to Middle Eastern crude exports continued, despite a gradual increase in crude oil shipments through the Strait of Hormuz.
On October 4 local time, foreign media outlets including Arab News reported that the OPEC+ Joint Ministerial Monitoring Committee (JMMC) held its 68th video conference and agreed to maintain the crude oil production target for November at its current level. During the meeting, the committee reviewed recent conditions in the global oil market and reaffirmed the key role of the Declaration of Cooperation in maintaining stability in global energy markets.
The meeting was attended by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman.
The committee particularly emphasized the importance of protecting international maritime shipping routes to ensure the smooth and uninterrupted supply of energy resources. It also expressed deep concern over recent attacks targeting energy infrastructure, noting that restoring damaged facilities to normal operation requires enormous amounts of time and money and could affect overall supply capacity.
The committee warned, "Any actions that threaten energy supply security, such as attacking infrastructure or disrupting international maritime routes, could increase market volatility and weaken joint efforts under the Declaration of Cooperation."
The committee also reviewed crude oil production data for July and August and confirmed that OPEC members and participating non-OPEC oil-producing countries were fully implementing the Declaration of Cooperation. It said it would continue monitoring compliance with the production cuts agreed at the 38th OPEC and non-OPEC Ministerial Meeting on December 5, 2024.
The committee also decided to retain the authority to closely monitor future market conditions, convene additional meetings if necessary or request a ministerial-level meeting.
OPEC+ oil-producing countries in the Gulf region have been unable to meet their production targets as tensions in the Persian Gulf disrupted exports. In recent months, export volumes have fallen to about 60% to 80% of their levels before the war.
OPEC statistics showed that production by the seven key OPEC+ countries attending the meeting remained about 5 million barrels per day below the level before the war involving Iran broke out in February, even though their crude oil output surged from 630,000 barrels per day in July to 25 million barrels per day in August.
UBS analyst Giovanni Staunovo said, "OPEC+ froze its production limits as the market expected," adding, "Despite increased traffic through the Strait of Hormuz, actual production remains well below the allocated quotas." He continued, "As a result, supply and demand in the oil market remain tight."
Uncertainty caused by the war is also disrupting efforts to assess production capacity, an essential reference for determining OPEC+ countries' oil production levels next year.
Meanwhile, the next OPEC+ meeting is scheduled for November 29.

[email protected] Yoon Jae-jun Reporter