OPEC maintains oil quotas lifting energy sector 1.4%
- Australian energy stocks rally as OPEC maintains production quotas
- Crude oil prices rise past $125 a barrel.
- OPEC plans capacity audit to set future limits.
Australian energy stocks rose 1.4% during morning trade following reports that major OPEC+ nations will keep oil production quotas unchanged.
The output decision came amidst ongoing conflict in the Middle East that disrupted regional shipments and pushed crude oil prices above US$90 a barrel.
"For now, OPEC+ is moving barrels on paper rather than in the physical market," said Rystad Energy Head of Geopolitical Analysis Jorge Leon.
The subgroup of seven nations continued lifting quotas to reverse previous production curbs, which the organisation stated could offer members room to expand output once conflict subsides.
Following the announcement, Woodside Energy (ASX:WDS) was up 1.0%, Santos (ASX:STO) rose 1.2%, Yancoal Australia (ASX:YAL) gained 5.1%, and Whitehaven Coal (ASX:WHC) jumped 6.6%.
OPEC+ scheduled its next monthly meeting for Oct. 4 to begin reviewing member operations.
The organisation stated that this upcoming review will audit each member's physical production capacity to calculate production limits heading into 2027.
