OPEC+ Considers Modest Oil Output Boost Amid Supply Concerns

OPEC+ is expected to agree on a small increase in oil output targets for December amid supply glut concerns. The group has raised targets by 2.7 million bpd since April but slowed the pace recently. Sanctions on Russia pose additional challenges.

OPEC+ is anticipated to approve a minor increase in oil production targets for December as it navigates forecasts of a potential supply surplus in the coming year. This decision follows a series of output raises amounting to over 2.7 million barrels per day since April.

In recent months, the pace of these raises has decelerated to 137,000 bpd in response to predictions of a looming oversupply. The upcoming sanctions on Russia, an OPEC+ member, add complexity to the deliberations as Moscow could face difficulties in boosting output further.

The members, including key players like Saudi Arabia, Russia, and the UAE, are expected to solidify plans on Sunday, although some insiders suggest a pause on output hikes is also a possibility. As oil prices rebound following a dip in October, OPEC+ remains cautious, waiting for clearer signals of supply issues before any significant production increase.

(With inputs from agencies.)