Seven major oil-producing countries agreed to keep crude production unchanged in November, as the conflict involving Iran disrupted global supplies and pushed benchmark Brent crude above $100 a barrel, AP reported.
The OPEC+ subgroup comprising Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman made the decision. The group is scheduled to meet again on Nov. 1 to assess oil market developments and decide whether any output adjustment is needed.
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According to AP, the production decision comes as the conflict with Iran has intensified concerns over global oil supplies. Fighting that began with U.S. and Israeli attacks on Iran on Feb. 28 has disrupted flows and contributed to a sharp increase in crude prices.
The latest OPEC+ decision keeps output steady despite rising oil prices, reflecting the group's focus on monitoring supply disruptions and market conditions before making further production changes.
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Meanwhile, the Group of Seven wealthy democracies plans to release 100 million barrels of oil and refined fuel products to ease pressure on global energy markets, AP reported.
The G7 plans to begin the release with substantial volumes of diesel, with supplies expected to be frontloaded over the next 20 days. The remaining volumes are expected to be released over four months.
Diesel prices have recently climbed to record highs in the United States, increasing costs for farmers, truck operators and consumers reliant on the fuel.
The planned release represents an effort by major economies to cushion the impact of supply disruptions and rising energy costs as the conflict continues to affect global oil markets.
With Brent crude above $100 a barrel, the next OPEC+ meeting on Nov. 1 will be closely watched for signs of whether the group could alter production in response to changing supply risks and demand conditions.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
