In Sunday’s online meeting, the eight of OPEC+ countries decided to increase their production shares of 137,000 barrels per day in November. It is an increase of equal entity compared to that approved in the previous September meeting, but lower than the expectations of many analysts. All while the sign tries to avoid exerting prices on prices due to weak demand. The eight countries of the organization will meet again on November 2nd.
The increase established for the month October
“In light of the stable global economic prospects and current fundamental solids of the market, as a reflection of the low oil stocks”, Saudi Arabia, Russia and the other six members of the OPEC+ “have decided to implement an adjustment of the production of 137,000 barrels per day compared to the additional voluntary adjustments of 1.65 million barrels per day” compared to October levels. It can be read in a note from the organization of the major oil exporters.
Meanwhile, the future petroleum Brent December 2025 reaches 65.5 dollars per barrel (+1.6%) and the future Greggio WTI oil November 2025 touches the 62 dollars (+1.7%).
“The countries will continue to monitor and carefully evaluate market conditions and, in their continuous commitment to support market stability, have reiterated the importance of adopting a cautious approach and maintaining maximum flexibility to suspend or cancel further voluntary adjustments of the production”
Adds the note of the OPEC+.
Analysts’ expectations and previous increases
The increase established for October is well below the increase up to 500 thousand barrels per day that some participants in the market had foreseen, a perspective that had led the sale of last week.
Both the Brent Oil Futures and West Texas Intermediate (WTI) Futures (WTI), in fact, collapsed by over 8% last eighth, recording the steepest weekly decline in almost three months.
The decision relieved the traders who feared that a wave of new barrels would overwhelm a fragile question. In recent months, in fact, Saudi Arabia, Russia, Iraq, United Arab Emirates, Kuwait, Kazakhstan, Oman and Algeria have already increased their shares of over 2.5 million barrels per day, and are gradually canceling the record cuts put in place during the pandemic.
Lastly, in the meeting at the beginning of September, the sign had established to implement an adjustment of the production of 137,000 barrels per day.
The prospects
The oil markets remain under pressure due to the increase in shale production in the United States and a global economic outlook contained. The concerns about the weakening of industrial activity in Europe and Asia, together with a strong dollar, have weighed on the expectations of the demand in recent weeks.
And in this dispute, the International Energy Agency provides that the application for oil will increase only by 700 thousand barrels per day between 2025 and 2026.
