OPEC+ has decided to maintain its current oil production targets for December, despite ongoing disruptions in the global oil market.
What happened
Seven core OPEC+ members, including Saudi Arabia, Russia, and Iraq, have agreed to keep their oil production levels unchanged from November, committing to a total production of 31 million barrels per day. This decision follows a meeting between OPEC and non-OPEC ministers, where they highlighted the importance of protecting global maritime routes to maintain uninterrupted energy flows.
The current disruptions, including the US-Iran war, have raised shipping and insurance costs, which now account for over one-third of the commodity's value. These increased costs are impeding the timely movement of crude oil and products, placing additional inflationary pressures on the global economy.
Saudi Arabia has the highest oil production target for December, at 10.47 million barrels per day, followed by Russia at 9.94 million barrels per day. Despite the disruptions, Middle East oil producers' exports have recovered strongly, hitting over 75% of pre-war levels in September.
However, the International Energy Agency forecasts a decline in global oil supply by an average of 5.8 million barrels per day this year, with renewed attacks in the Middle East threatening to derail further recoveries. Oil prices have been volatile, with Brent crude oil futures staying near or above $100 per barrel since October.
