Core Viewpoint - OPEC+ is conducting a comprehensive audit of its members' oil production capabilities, with updates set to take effect in 2027, in response to the need for more realistic output quotas amid shifting global oil markets [2][4]. Group 1: Audit Methodology and Implementation - The audit, initiated in May, aims to align output quotas with actual production capabilities, utilizing Dallas-based DeGolyer and MacNaughton Corp. for most of the work [2][4]. - The definition of "maximum sustainable capacity" will be based on output achievable within 90 days and maintainable for a year [6]. Group 2: Member-Specific Considerations - Some OPEC+ members, such as the United Arab Emirates and Iraq, have increased their production capacity, while others are facing declines [3]. - Iran has chosen to use the average of its production in August, September, and October as its baseline for the audit [5]. Group 3: Market Context and Implications - The global oil market is experiencing a shift towards oversupply, which may lead OPEC+ to consider new production cutbacks next year [4]. - More realistic quotas resulting from the audit could enhance the credibility of potential production curbs [4]. Group 4: Historical Context and Challenges - The audit process has previously caused friction within OPEC+, exemplified by Angola's departure from the group following a review in 2023 [7]. - Historical practices of applying pro-rata changes to output targets have led to discrepancies between quotas and actual production capabilities [7][8].