OPEC+ Confirms December Oil Output Increase Amid Compensation Cuts

OPEC+ plans to proceed with a December oil production increase, expecting minimal impact due to compensatory cuts by certain members. Iraq and Kazakhstan will make extra cuts to balance prior overproduction. Saudi Arabia backs the plan, dismissing any price targets. Top ministers will review the policy in October.

OPEC+ is set to implement its planned oil output increase in December, counterbalancing with additional cuts from specific members to address prior overproduction, sources confirmed Thursday.

The Organization of the Petroleum Exporting Countries and its allies, including Russia, will raise production by 180,000 barrels per day in December as part of phasing out recent output cuts. Iraq and Kazakhstan have pledged extra reductions totaling 123,000 bpd in September and future months.

According to sources, the compensatory actions will minimize the impact of the December increase. Saudi Arabia, committed to the plan, has renounced its unofficial $100 barrel price target, emphasizing decisions based on market fundamentals.

(With inputs from agencies.)