OPEC+ agrees to oil output increase for November

• OPEC+ agrees to raise oil production by 137,000 bpd in November, continuing the cautious pace set in October.

• Saudi Arabia pushed for a larger increase to gain market share, while Russia preferred a smaller rise due to sanctions-related output challenges.

Eight key members of the OPEC+ alliance on Sunday agreed to a modest increase in oil production for November, confirming a rise of 137,000 barrels per day (bpd) in an effort to balance global markets and slowly reclaim market share.

Finalized during a virtual meeting, the decision involved core members of the Organization of the Petroleum Exporting Countries and allies including Russia and Saudi Arabia.

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The 137,000 bpd increase maintains the same pace of supply addition agreed upon for October, reflecting a cautious approach despite pressure from major consumers, particularly the United States, to lower global oil prices.

The group stated the move was motivated by a "steady global economic outlook and current healthy market fundamentals," as they continue to gradually unwind massive production cuts implemented over the past two years.

Saudi Arabia and Russia held differing views within the alliance, with Riyadh pushing for a larger production increase to expand its market share, while Moscow favored a smaller rise, citing challenges in boosting output under Western sanctions related to the war in Ukraine.

Oil prices, which began the year above USD 80 a barrel, have recently hovered near a four-month low amid fears of oversupply and uncertain global demand. 

OPEC+ will reconvene on November 2 to decide December production levels.