OPEC+ ready to take additional measures if needed after attack on Israel

OPEC+ producers said they were ready to "take additional measures" if needed following an Oct. 8 meeting on the sidelines of a UNFCCC climate week in Riyadh, a day after a surprise attack by Hamas militants on Israel.

"The ministers reaffirmed the readiness of the countries of the Declaration of Cooperation to take additional measures at any time as part of their continuing efforts to support market stability and build on the strong cohesion of the OPEC+ countries," the group said in a statement to Saudi news agency SPA.

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The Oct. 7 attack also conincided the 50th anniversary of the Yom Kippur war which had a significant impact on oil markets due to the embargo by Arab producers in 1973. Israel declared an official state of war on Oct. 8, 2023 for the first time since Yom Kippur, raising concerns of retaliation and further escalation of conflict.

Oil rallied during early Asian trade Oct. 9, with ICE Brent futures rising 4.24% to trade at $88.17/b.

Saudi energy minister Prince Abdulaziz told S&P Global Commodity Insights Oct. 8 that the potential impact on crude prices from the escalating conflict "depended on a number of factors". OPEC+ ministers declined to comment on the ongoing events in Israel and Palestine.

The conflict comes amid a backdrop of OPEC+'s biggest producers Saudi Arabia and Russia looking to support global oil prices as they dip back from the recent rally. Riyadh and Moscow said on Oct. 4 that they would continue to voluntarily restrict supply by 1 million b/d and 300,000 b/d, respectively, through December. There will be another review in November, presumably at the same time as the OPEC+ ministerial meeting scheduled for Nov. 26.