OPEC+ will boost oil output from November by 137,000 barrels per day (bpd), it announced on Sunday, opting for the same relatively modest monthly increase as in October amid worries over a looming supply excess.
The group comprising the Organization of the Petroleum Exporting Countries (OPEC) plus Russia and some smaller producers has increased its oil output targets by more than 2.7 million bpd this year, equating to approximately 2.5% of global demand.
The shift in policy, following years of cuts, is designed to regain market share from rivals, such as U.S. shale producers.
Brent prices fell below $65 per barrel on Friday as most analysts predict a supply glut in the fourth quarter and in 2026 due to slower demand and rising U.S. supply.
Prices are trading below this year's peaks of $82 per barrel but above $60 per barrel seen in May.
In the run-up to the meeting, Russia and Saudi Arabia, the two biggest producers in the OPEC+ group, had different views, sources have said.
Russia was advocating for a modest output increase, similar to that in October, to avoid pressuring oil prices. Because it would struggle to raise output owing to sanctions over its war in Ukraine, two sources said this week.
Saudi Arabia would have preferred a figure double, triple, or even quadruple that amount, meaning 274,000 bpd, 411,000 bpd, or 548,000 bpd, respectively, because it has spare capacity and wants to regain market share more quickly, sources said ahead of the meeting.
OPEC views the global economic outlook as steady and market fundamentals as healthy, due to low oil inventories, it said in a statement on Sunday.
OPEC+ output cuts had peaked in March, reaching a total of 5.85 million bpd. The cuts consisted of three elements: voluntary cuts of 2.2 million bpd, 1.65 million bpd by eight members, and a further 2 million bpd by the entire group.
The eight producers planned to fully unwind one element of those cuts (2.2 million bpd) by the end of September. For October, they started removing the second layer of 1.65 million bpd with an increase of 137,000 bpd.
The eight producers will meet again on Nov. 2.
