OPEC+ Alliance Freezes Oil Production in December Ahead of 2027 Meeting

The OPEC+ alliance has decided to keep oil production quotas unchanged for the upcoming December, marking the third consecutive month of stability amid ongoing impacts of the war on Iran and fluctuating oil market indicators. Seven countries—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—agreed to maintain their targeted production levels following a six-month period of output increases that ended in August. The next meeting is scheduled for November 29 to set production policies for 2027. OPEC data revealed that the alliance's production rose by approximately 903,000 barrels per day in September, reaching 39.068 million barrels, with a total increase of 1.36 million barrels per day over two months. Saudi Arabia led the increase, boosting its output by 744,000 barrels per day to over 8 million barrels. The oil market is experiencing volatility; Brent crude futures rose to $118 per barrel last week, while the physical market showed signs of weakness amid recovering shipping activity through the Strait of Hormuz. Meanwhile, OPEC lowered its forecast for global oil demand growth in 2026 for the sixth consecutive month to 200,000 barrels per day, while raising its demand growth forecast for 2027 to 2.6 million barrels per day.