OPEC+ maintains November output increase at 137,000 bpd

OPEC+ will increase crude oil output by 137,000 barrels per day in November, the alliance announced Sunday. The figure matches October's addition and marks the second month of production increases after the group began unwinding earlier cuts.

The alliance, which includes OPEC members and partners like Russia, has now raised output targets by 2.7 million barrels per day during 2024, Reuters reports. That amount equals roughly 2.5 percent of global oil demand. Eight core producers are participating in the gradual phase-out of voluntary production cuts that had reached 5.85 million barrels per day at their peak.

Internal discussions before Sunday's decision revealed different views among major producers. Russia pushed for maintaining the smaller monthly increase, citing limits from sanctions and concerns about prices. Saudi Arabia argued for a larger addition, proposing three options ranging from 274,000 to 548,000 barrels per day. The kingdom has spare production capacity it wants to use. The group settled on repeating November's 137,000 barrel increase.

Brent crude traded below $65 per barrel last week, down from this year's high near $82. The alliance described market fundamentals as healthy and pointed to low global inventories. OPEC+ said the gradual production increases would help recover market share lost to other suppliers.

Also read: Oil oversupply fears cap price growth

The group will meet again on November 2 to determine December production levels. Analysts from Rystad Energy and TP ICAP said the modest increase reflects caution, with TP ICAP noting prices could see limited upward movement from the announcement.

Before Sunday's meeting, some market participants had expected a much larger production increase. The decision to maintain the same pace as October removes that uncertainty. The alliance has framed the gradual approach as necessary to balance supply conditions while returning more oil to the market after voluntary cuts dominated the past two years.

OPEC+ repeats 137,000 bpd increase despite surplus concerns