OPEC Output Steady Last Month After Symbolic Cut

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OPEC oil output fell in October for the first time since June on lower exports from African members and lower output from some Gulf producers after the wider OPEC+ alliance pledged a small output cut, says an article published on Reuters.

Highest output

The Organization of the Petroleum Exporting Countries (OPEC)pumped 29.71 million barrels per day (bpd) last month, the survey found, down 20,000 bpd from September which was the highest output since April 2020. PRODN-TOTAL

Unwind cuts

OPEC and its allies, known as OPEC+, have been boosting output for most of the year to unwind cuts made in 2020.

For October, with oil prices weakening amid concern of recession, the group shifted back to trimming output and later decided on a larger reduction.

Group’s target

Their decision for October called for a 100,000 bpd cut in the group’s output target, of which about 64,000 bpd was meant to come from the 10 participating OPEC countries.

WELL BELOW TARGET

OPEC lowered output by less than this with a reduction of 20,000 bpd, the survey found, but is still pumping far less than called for due to falling production capacity in some countries.

Output from the 10 OPEC members covered by the agreement fell 1.36 million bpd below their October target after a 1.32 million bpd shortfall reported for September.

Lower exports

In October, Angola and Nigeria posted the largest declines in output, reflecting lower exports, the survey found.

Nigeria still shipped less crude even after the restart of exports from a key terminal, Forcados.

Pumping a shade

The United Arab Emirates and Kuwait made small cuts as called for under the deal. Top exporter Saudi Arabia kept output flat, the survey found, pumping a shade below its quota.

Output in Iraq, OPEC’s second-largest producer, posted the group’s largest increase of 50,000 bpd according to the survey.

Survey aims

The Reuters survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from tanker trackers such as Petro-Logistics, and information provided by sources at oil companies, OPEC and consultants.

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Source: Reuters

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