Posted by News Express | 9 November 2016 | 1,827 times
Oil production from the Organisation of the Petroleum Exporting Countries (OPEC) rose to another record, at 33.54 million barrels per day in October, according to survey of OPEC and oil industry officials by S&P Global Platts.
S&P Global Platts is the leading independent provider of information and benchmark prices for the commodities and energy markets.
Recoveries in Libya and Nigeria significantly boosted the organization’s output and more than offset field maintenance in Angola.
The survey noted that output from Iran, Iraq climbed higher while Libya and Nigeria added 190,000 b/d each in October.
The gains, it said totalled 300,000 b/d from September and mark the fifth consecutive month of increased production.
This, it said further complicated the path for OPEC to freeze production between 32.5 million to 33 million b/d in order to support prices and accelerate the drawdown of inventories.
According to Herman Wang, senior writer for S&P Global Platts, OPEC’s freeze math has gotten more complicated, as its countries keep pumping more.
“With OPEC having self-imposed a November 30 deadline to finalize the freeze, the pressure will be on to deliver a deal that the market views as credible.
“Progress towards that goal has been slow, and a fifth straight month of record high production won’t help.” He added
Libya and Nigeria are exempted from the freeze, according to the plan announced in Algiers five weeks ago.
It said that the increases in Iraq and the expected return of Angolan production once the Dalia field maintenance is complete will make it harder.
OPEC kingpin Saudi Arabia, which is expected to bear the brunt of any cuts that the producer group implements, saw its output decline to 10.53 million b/d for October. (NAN)
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