OPEC+ Headed to Keep December Production Targets Unchanged at Sunday Meeting

Three informed sources told Reuters that the OPEC+ group is likely to keep December oil production targets unchanged at its Sunday meeting, in line with expectations of no new policy adjustments before next year. No official decision has been issued yet.

The group had kept November targets unchanged earlier in the fall. This comes at a time when oil prices continue to be affected by regional tensions and shipping disruptions in the Gulf.

Gulf markets rose on Tuesday as diplomatic efforts escalated to contain the conflict. The Saudi index climbed 2.3%, supported by a 2.8% gain in Al Rajhi Bank shares, while Aramco shares rose 1.7%. The Dubai index jumped 2% and the Qatar index gained 3.4%, while Egypt's main index closed up 3.5%.

Mahmoud Mashal, senior market analyst at VT Markets Dubai, said geopolitical worries eased as regional diplomacy gathered pace, though shipping disruptions on key maritime routes remain a risk and strong third-quarter earnings could provide further support. Abu Dhabi's index rose 1.1%, while Bahrain and Oman slipped 0.3% and 0.1% respectively, and Kuwait's index gained 0.9%.

What Do These Terms Mean?

OPEC+: An alliance comprising the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC nations, most notably Russia, whose members coordinate on production levels to support prices.

Production Targets: Agreed quotas of oil barrels that each member country is allowed to produce daily during a specified period.

Index: A measure of the movement of a group of stocks in a financial market, used to gauge the market's overall direction.