The OPEC+ has agreed to reduce oil production by 2 mb/d in November 2022 from the August 2022 required production level, corresponding to a 4.5% cut in the organisation's total supply, with the aim to support oil prices that have sagged because of recession fears. However, because some OPEC+ members are already unable to achieve the group's quotas, the impact of the production cut on oil prices is likely to be limited.
Accordingly, both Saudi Arabia and Russia should produce 10.5 mb/d in November 2022; the production of the OPEC 10 group members should reach 25.4 mb/d, that of non-OPEC producers 16.4 mb/d, leading to the production of the OPEC+ to an average of 41.9 mb/d. In addition, OPEC and its non-OPEC allies including Russia decided to extend their cooperation, which was set to end on 31 December 2022, by a year.
In September 2022, the cartel decided to reduce oil production by 0.1 mb/d for the month of October 2022. This was the the first output cut since the height of the pandemic. Previously, in August 2022, the OPEC+ agreed to bring an additional 0.1 mb/d back in production for the month of September 2022, on top of the 0.648 mb/d increase in August 2022. In June 2022, the group of oil-producing countries endorsed a deal to increase its monthly global oil-supply hikes by 50% from 0.432 mbl/d in June 2022 to 0.648 mbl/d in July and August 2022. Between August 2021 and June 2022, OPEC+ raised its output target each month by 0.432 mb/d.