OPEC+ will halt production increases for three months!

OPEC+ Members Freeze Production Increase

The OPEC+, led by Saudi Arabia, emphasized that it plans to increase production by about 137,000 barrels per day in October and November, while announcing that it will make no increase for the January-March period. This strategic decision was made in light of weakening seasonal demand.

Gradually Restarted Production

The Organization of the Petroleum Exporting Countries continues its return from a 1.65 million barrel production cut aimed at revitalizing the markets, following the rapid resumption of production this year. However, increasing signs of a larger supply surplus in the future are drawing attention.

Market Pressures Persist

This meeting takes place during a period when pressure on Russia has increased following sanctions imposed by the United States on leading oil producers. While the sanctions somewhat support prices, it is noted that it is still too early to measure OPEC+'s overall market impact.

Salman's Visit to Washington

Meanwhile, Saudi Crown Prince Mohammed bin Salman is set to visit Washington at the end of this month to meet with Donald Trump. This meeting is interpreted as an effort to raise prices.

Price Forecasts Decline

The current production increases by OPEC+ have limited the market impact due to some members compensating for excessive production and others struggling to increase production. The Brent crude oil prices fell below 65 dollars with a 13% decrease over the year. Moreover, the International Energy Agency predicts that supply could exceed demand by more than 3 million barrels per day this quarter.

OPEC+ Meeting Expected on November 30

Saudi Arabia's efforts to increase oil prices are resulting in a deepening budget deficit and cutbacks in various economic projects. OPEC+ is set to meet on November 30 to review production levels for 2026.