OPEC Raises Oil Production – Highest Level Since 2020
A Reuters’ survey published last Friday showed that OPEC raised its September crude oil production to the highest level since 2020, yet failed to meet its September quota.
The cartel’s production for September came in below its specified quota for the month, although the month on month increase in production was higher than the promised 64,000 bpd hike.
The survey found that OPEC’s September production stood at 29.81m bpd, a 210,000bpd increase over August. For its 10 participating members in the OPEC cut, September’s production was 130,000bpd over August levels, but still shy of their full production targets.
The survey further discovered that the 10 participating members of the OPEC production pact, including Nigeria, underproduced their target by 1.32 million bpd – an improvement over their 1.4 million bpd shortfall in August.
Saudi Arabia managed to raise its production by 50,000 bpd for September, reaching its 11 million bpd target. The UAE and Kuwait also hit their targets.
Iraq’s production was “little changed” according to Reuters. The survey indicated that Libya and Nigeria, exempt from the OPEC production agreement, raised their production, helping contribute to the group’s overall production increase.
OPEC+ has reportedly narrowed down its options for November’s production plans, and is currently discussing a production cut between 500,000 bpd and 1 million bpd, a Reuters source said on Friday.
The larger OPEC+ group is scheduled to meet on October 5 to formalize its plan for November.
Earlier last week, Russia was reportedly recommending to the group a production cut of 1 million bpd. Signs point to OPEC+ being willing to defend somewhere near $90 oil.
Currently, the Brent benchmark is trading at $88.30 per barrel—trading down despite the heightened geopolitical situation with Russia and Ukraine, the tight market.