OPEC Sept Oil Output Rise To 24.38mbpd
The Organization of Petroleum Exporting Countries (OPEC) oil output rose for a third time in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.
The survey found out that OPEC pumped 24.38 million bpd on average in September, up 160,000 bpd from August’s revised figure and a further boost from the three-decade low reached in June.
An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.
“While demand struggles to keep up, supply is rising. Libya’s production is coming back,” the report quoted Paola Rodriguez-Masiu, analyst at Rystad Energy.
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Libya and Iran are two of the OPEC members exempt from an supply pact by OPEC and allies including Russia, known as OPEC+. The pact has helped to boost prices in 2020 from historic lows in April as the coronavirus crisis destroyed demand.
OPEC+ from May 1 made a record cut of 9.7 million bpd, or 10% of global output. Since August, the group has been pumping more as the cut tapered to 7.7 million bpd due to a partial demand recovery, of which OPEC’s share is 4.868 million bpd, Reuters said.
In September, OPEC countries bound by the deal delivered 101% of the pledged reduction, the survey found, up from 100% in August. September’s increase indicated that OPEC is pumping about 2 million bpd more than June’s figure, which was the lowest since 1991 based on Reuters surveys and OPEC data.
Libyan production is rising after Eastern Libyan commander Khalifa Haftar said on Sept. 18 his forces would lift their eight-month blockade of oil exports. The survey found output increased on average by 70,000 bpd in September.
SOURCE: orientenergyreview.com
