Opec+ Keeps December Oil Output Steady Ahead of 2027 Call

Quick Answer: Opec+ kept its December oil output targets unchanged at an online meeting on Sunday. The bigger test is the Nov 29 ministerial meeting, where the 21-country group is expected to set 2027 quotas while Brent sits near US$118. The source names no Bursa Malaysia-listed company, so oil prices are the link to watch for local portfolios.

What Is Happening to Opec+ Oil Output in December?

Opec+ held its December oil output targets steady, the group said in a statement. Seven core members made the decision: Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

Most of these members are still pumping well below their targets. Gulf members have been boosting exports that were disrupted for months by the conflict.

The group also kept targets steady for October and November. Only the seven members, plus the UAE until it quit Opec in May, have taken part in monthly output decisions in recent years.

Why Is Brent Crude Near US$118 a Barrel?

Brent crude settled at almost US$118 on Friday, its highest since April. Prices rose more than 2% that day.

Traders are bracing for a potential escalation in the Iran war after the US midterm elections. The conflict is the main source of supply uncertainty for the group.

Will the Nov 29 Meeting Set Opec+ Oil Output for 2027?

All members of the 21-country group are due to meet on Nov 29. Analysts expect the meeting to decide 2027 quotas.

Jorge Leon, an analyst at Rystad, said: “Today’s decision was the easy one.” He added that the Nov 29 ministerial meeting will decide Opec+’s 2027 production framework.

The International Energy Agency and other forecasters have warned of excess supply in 2027 if Gulf flows return to normal. Leon said Opec+ must plan around the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of any surplus once disrupted barrels return.

How Much Opec+ Production Cut Is Still in Place?

The seven members completed the phased rollback of a 1.65 million barrels per day supply cut, first agreed in 2023, in September. Opec+ still has one more layer of cuts of about 2 million bpd, covering most members through the end of 2026.

The group must complete a review of members’ production capacity during the fourth quarter. That review sets the 2027 baselines that will determine future quotas and shape plans to unwind the remaining cuts.

Reuters reported in October that the Iran war has disrupted projects to expand capacity across the Middle East. The capacity review is now expected to be completed by mid-November.

Why Does Opec+ Oil Output Matter for Bursa Malaysia Watchers?

Oil-linked names on Bursa Malaysia respond to the same price signals in this story. Investors may want to watch the Nov 29 outcome, the capacity review and Brent’s direction from here. Investors wanting a structured way to track energy names can read our AI Stock Analysis for Malaysians guide.

Key Takeaways

Opec+ kept December oil output targets steady at a Sunday online meeting.
Most members are still pumping well below their targets.
The 21-country group meets on Nov 29 to decide 2027 quotas.
About 2 million bpd of cuts remain through the end of 2026.
Brent settled at almost US$118, its highest since April.

Frequently Asked Questions

Did Opec+ change its oil output targets for December?

No. Opec+ kept its December targets steady at an online meeting on Sunday, after holding them steady for October and November. The seven core members making the decision were Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

When will Opec+ decide its 2027 production quotas?

All 21 members of the group are due to meet on Nov 29. Analysts expect the ministerial meeting to decide the 2027 quotas.

How much Opec+ supply cut is still in place?

About 2 million bpd of cuts cover most members through the end of 2026. The phased rollback of a 1.65 million bpd cut, first agreed in 2023, was completed in September.

Why is Brent crude near US$118 a barrel?

Brent settled at almost US$118 on Friday, the highest since April, after rising more than 2%. Traders are bracing for a potential escalation in the Iran war after the US midterm elections.

Disclaimer: This article is for information only and is not financial advice. Always do your own research before making any investment decision.

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