Report: OPEC+ may maintain its production quotas for next month, temporarily halting further release of spare capacity.

Report: OPEC+ may maintain its production quotas for next month, temporarily halting further release of spare capacity.

According to Bloomberg, citing sources familiar with the matter, core OPEC+ members are likely to stick to their original plan and maintain their crude oil production quotas for next month at their meeting this weekend.

An OPEC+ group led by Saudi Arabia and Russia nominally completed the restoration of previously agreed-upon production cuts for 2023 this month, but the war in Iran has made it practically impossible for Middle Eastern countries to implement these production increase plans.

The two representatives said that OPEC+ has reached a preliminary agreement to postpone the restoration of another portion of spare capacity until at least the beginning of next year, so it is unlikely that other options will be discussed at the monthly video conference on Sunday.

Even without the disruption caused by the war, further restoring the last remaining portion of production cuts made in 2022 would face a complex situation, as few countries besides Saudi Arabia are technically capable of restoring production to those levels.

In recent years, many oil-producing countries have experienced a decline in production capacity due to insufficient investment, sanctions, and other factors.

On the other hand, Russian Deputy Prime Minister Novak said he expects OPEC+ will not discuss cutting the organization's production quotas on Sunday.

He stated that oil demand is recovering, and OPEC+ will discuss market conditions and the implementation of production limits by its members. Interfax quoted Novak's remarks in Vladivostok as saying that global oil demand is recovering.

Risk Warning and DisclaimerInvesting involves risk; please exercise caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Any investment decisions made based on this information are at your own risk.