Commodities October 31, 2026 04:44 PM

OPEC+ Agrees in Principle to Hold December Output Targets Steady

Group set to defer supply changes as members prepare baseline reviews and 2027 quota talks

By Avery Klein
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OPEC+ has reached an in-principle agreement to keep December production targets unchanged, with the decision expected to be discussed at an online meeting of seven core members. The alliance is maintaining existing reduction layers while preparing to review production capacity and set new baselines ahead of 2027 quota negotiations.

OPEC+ Agrees in Principle to Hold December Output Targets Steady
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Key Points

  • OPEC+ reached an in-principle agreement to keep December production targets unchanged; the matter will be discussed at an online meeting of seven core members (Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman).
  • The alliance has completed the phased rollback of a 1.65 million bpd cut in September but maintains an additional roughly 2 million bpd of reductions covering most members through the end of 2026.
  • OPEC+ plans to focus on a fourth-quarter review of members' production capacity and to set new baselines that will guide 2027 quota negotiations and decisions about unwinding remaining cuts.

OPEC+ members have reached an in-principle accord to maintain their December oil production targets, according to three people familiar with the matter. The proposed decision is expected to be discussed at an online meeting scheduled for Sunday that will include seven principal members - Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

The agreement comes as Gulf producers continue efforts to restore exports that have been disrupted for months by the war involving Iran. Despite those efforts, most members are still producing below the levels assigned to them under current targets, reflecting ongoing logistical and operational challenges in moving barrels to market.

In September, OPEC+ completed the phased rollback of a production cut that totalled 1.65 million barrels per day - a reduction that had been agreed in 2023. At the same time, the group continues to implement a separate layer of output curbs amounting to roughly 2 million barrels per day. Those additional cuts cover most members and are scheduled to remain in place through the end of 2026.

Looking beyond the near term, the alliance is preparing to shift its attention toward negotiations over production quotas for 2027. The group is expected to carry out a review of members' production capacity during the fourth quarter before establishing new baselines. Those baselines will determine future output quotas and will frame any plans to unwind the remaining cuts.

Earlier reporting in July indicated that OPEC+ was likely to keep its production targets unchanged through the fourth quarter as it concentrated on the 2027 quota discussions. If members proceed with the December standstill, the outcome would preserve the group's existing production policy while deliberations continue on next year's baselines and quota framework.


Context and implications

The expected decision to hold December targets steady effectively maintains the status quo on aggregate supply settings among the alliance. That continuity endures even as the group balances two parallel processes: operational efforts to restore disrupted exports and a technical review of capacity that will inform a reset of quotas for 2027.

The situation highlights a dual challenge for members - addressing near-term export and delivery constraints while negotiating medium-term production baselines. Both tracks will influence how and when the alliance unwinds the remaining output reductions now scheduled into late 2026.


What remains uncertain

  • How quickly Gulf producers can restore disrupted export flows given the ongoing war involving Iran.
  • Whether members will return to their assigned production levels given current output remains below targets.
  • The outcomes of the fourth-quarter capacity review and the subsequent 2027 baseline negotiations, which will determine future quota allocations and the timetable for unwinding remaining cuts.

Risks

  • Continued disruption to exports tied to the war involving Iran could hinder recovery of supply volumes, affecting oil producers and energy trading markets.
  • Many members are currently producing below assigned targets, creating uncertainty about near-term supply reliability for oil markets and refiners.
  • The review of production capacity and 2027 quota negotiations introduce uncertainty for future output allocation and timing of unwinding existing cuts, affecting oil producers, commodity traders and energy-linked equities.

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