OPEC+ expected to approve small increase in oil output target – sources
- SAUDI ARABIA BREAKING NEWS
- Nov 2
- 2 min read
Vienna, November 3 (Saudi Arabia Breaking News) – OPEC+ is set to approve a modest rise in oil production targets for December, according to three sources familiar with the ongoing discussions, as the producers’ group takes a cautious approach amid rising concerns about a potential supply surplus.
The 23-member group, led by Saudi Arabia and Russia, has raised output targets by more than 2.7 million barrels per day (bpd) – equivalent to about 2.5% of global demand – since April. However, the pace of increases has slowed significantly since October due to forecasts warning of an oversupplied market next year.
Eight OPEC+ members – Saudi Arabia, Russia, the United Arab Emirates, Iraq, Kuwait, Oman, Kazakhstan and Algeria – have agreed in principle to raise production by 137,000 bpd in December, the sources said. A formal decision is expected to be approved swiftly during Sunday's virtual meeting scheduled for 1600 GMT.
The sources, who declined to be named because they were not authorised to speak publicly, also cited new Western sanctions on Russia as a complicating factor in the talks. Russia, a key OPEC+ member, may find it difficult to raise output further, as fresh sanctions by the United States and Britain target top producers Rosneft and Lukoil.
Oil prices fell to a five-month low of around $60 a barrel on October 20 due to growing inventories but have since rebounded to about $65 a barrel, supported by sanctions on Russian oil and renewed optimism over U.S. trade negotiations.
Analysts from RBC, Rystad Energy, Commerzbank and SEB said this week they expect OPEC+ to approve a 137,000 bpd increase, in line with the draft proposal.
OPEC+ had been cutting output for several years leading up to this year. Reductions peaked in March at a total of 5.85 million bpd, split between three components: 2.2 million bpd in voluntary cuts, 1.65 million bpd from eight members, and a further 2 million bpd from the entire group.
The voluntary cuts have been gradually unwound since April, while the broader 2 million bpd reduction remains in place and is scheduled to continue until the end of 2026.
