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OPEC Oil Output Jumps From Decade Low

OPEC’s crude oil production jumped by 1.26 million barrels per day from a decade-low in September to 29.71 million bpd in October, as Saudi Arabia restored its production to levels before the attacks on its oil facilities in mid-September, the monthly S&P Global Platts survey showed on Friday.

Saudi Arabia’s oil production jumped by 1.35 million bpd to 9.8 million bpd in October, as it appears to have fully recovered output after the September 14 attacks on vital oil infrastructure that took 5.7 million bpd—or 5 percent of global daily supply—offline.

Despite the production recovery, the Saudis continue to overcomply with the OPEC+ deal by more than 500,000 bpd, according to Platts estimates.

The other highlights of OPEC’s production in October, as per Platts survey, were non-compliant members Iraq and Nigeria still overproducing beyond their respective quotas, and Venezuela registering a rare production increase in October compared to September.

Iraq cut its October production by 30,000 bpd to 4.77 million, which is still more than 250,000 bpd above its cap under the OPEC+ deal. Another major overproducer, Nigeria, also reduced its production by 30,000 bpd, but it was also above its quota, by some 140,000 bpd.

Venezuela’s production edged up by 50,000 bpd to 650,000 bpd.

Platts estimates are similar to the findings of the Reuters survey last week, which also showed that Saudi Arabia was returning to normal production levels, Iraq and Nigeria were still overproducing, and Venezuela was increasing production.

Related: The Rig Count Collapse Is Far From Over

OPEC’s official production figures for October are due out in its monthly report on November 14.

With the Saudi attacks now behind them, OPEC members, and its allies led by Russia, are turning their attention to the meeting in early December set to discuss the production cut pact and possible changes to it.

Rather than advocating for a deeper overall cut, OPEC’s largest producer and de facto leader Saudi Arabia is said to be pressuring non-compliant cartel members to fall in line with their quotas, but will nevertheless seek higher oil prices ahead of the listing of Aramco expected for December.

By Tsvetana Paraskova for Oilprice.com

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