OPEC+ plans another oil output hike in November - Reuters

OPEC+ plans another oil output hike in November - Reuters

OPEC+ is set to approve another increase in oil production, this time by at least 137,000 barrels per day (bpd), according to sources familiar with the group's plans. The decision will be made at an online meeting scheduled for October 5, with the output increase taking effect in November .

The move comes as oil prices have been on the rise, trading above $70 per barrel in recent weeks. This increase is part of OPEC+'s strategy to boost market share and address pressure from U.S. President Donald Trump to lower oil prices .

OPEC+ has already raised its production quotas by more than 2.5 million bpd since April, representing about 2.4% of global demand. The group's total output reductions peaked at 5.85 million bpd, which included voluntary cuts of 2.2 million bpd and cuts by eight members of 1.65 million bpd, as well as a third layer of 2 million bpd by the entire group .

The upcoming increase is expected to be similar to the one approved for October, which will amount to at least 137,000 bpd. This increase is part of a phased reduction of the group's output cuts, with the first element of 2.2 million bpd fully unwound by the end of September and the second layer of 1.65 million bpd reduced by 137,000 bpd in October .

OPEC+ has also granted the United Arab Emirates permission to boost production by 300,000 bpd between April and September . The group's third layer of cuts, amounting to 2 million bpd, is scheduled to last until the end of 2026 .

The decision to increase production comes amid disruptions to Russian oil refining and shipments due to Ukrainian drone attacks on Russia's energy infrastructure . This has supported oil prices, which have risen to their highest levels since August 1, further encouraging OPEC+ to increase production .