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OPEC+ plans to move forward with a 180,000 barrels per day (bpd) oil production increase in December, following existing policy, while compensating for earlier overproduction by some members. Iraq and Kazakhstan have committed to cutting 123,000 bpd in September to address their overproduction. Saudi Arabia reiterated that it does not target a specific price, focusing instead on market fundamentals. Russia confirmed it will begin phasing out its production cuts in December, ensuring the market won't be flooded with excess supply. OPEC+ currently maintains output cuts of 5.86 million bpd, with no significant changes expected at the upcoming Joint Ministerial Monitoring Committee meeting in October.

Key Highlights

* OPEC+ plans a 180,000 bpd production increase in December.

* Iraq and Kazakhstan to cut 123,000 bpd in September to compensate for overproduction.

* Saudi Arabia denies targeting a $100 per barrel oil price.

* Russia confirms no changes to phasing out oil production cuts from December.

* OPEC+ currently maintains a total output cut of 5.86 million bpd.

OPEC+ is set to proceed with its planned oil production increase of 180,000 barrels per day (bpd) in December, according to insiders. The decision is part of a larger strategy to balance the market rather than a bid to reclaim market share, despite previous speculations. OPEC+ sources emphasized that this move follows existing policies, with Iraq and Kazakhstan pledging to reduce output by 123,000 bpd in September as compensation for earlier overproduction.

Current oil prices have been volatile, partly due to overproduction by certain members. The planned compensation cuts are expected to stabilize prices before the December hike takes effect. Saudi Arabia, a major player in OPEC+, reiterated that the organization does not aim for a specific oil price but focuses on balancing supply and demand. Despite a report claiming that Saudi Arabia might abandon its $100-per-barrel price target, the kingdom remains committed to decisions based on market fundamentals.

In addition, Russia confirmed that it will begin phasing out its production cuts in December as part of OPEC+’s broader strategy. The cuts will not flood the market, Russian Deputy Energy Minister Pavel Sorokin assured, as the country aims to manage output increases responsibly. The Joint Ministerial Monitoring Committee of OPEC+ will meet in early October to review market conditions, though no major policy changes are expected.

Finally

OPEC+ remains committed to balancing the oil market with measured output increases, as voluntary cuts wind down, aiming to avoid price volatility

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