OPEC oil output drops to lowest in 2024
OPEC oil output fell in September to its lowest this year, a Reuters survey found on Thursday, as unrest disrupted Libyan supply and Iraq made progress in complying with its cutbacks pledged to the wider OPEC+ alliance.
The Organization of the Petroleum Exporting Countries pumped 26.14 million barrels per day last month, down 390,000 bpd from August’s revised total, the survey found, with Libya accounting for the bulk of the drop.
A drop in Libyan exports and production amid a standoff between political factions over control of the central bank helped boost oil prices, which have come under pressure from concern about demand and rising supply outside OPEC+.
Libya provided the largest supply cut of 300,000 bpd, the survey found. Output should rebound after a dispute over the leadership of the country’s central bank was resolved and the national oil company lifted the force majeure at oilfields.
Aside from Libya, which is exempt from OPEC+ agreements to limit production, the biggest decline came from Iraq, which is seeking to boost compliance with its OPEC target. Iraq is still pumping 90,000 bpd above quota, the survey found.
Nigeria pumped 40,000 bpd less oil as exports declined, according to tanker tracking firms.
Iran’s crude exports up
Among countries posting higher output, the only gain was in Iran, which is also exempt from OPEC targets.
Iran has been boosting exports in the last few years despite US sanctions remaining in place and is pumping near its highest levels since 2018.
OPEC pumped about 130,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Iraq still accounting for the bulk of the excess, the survey found.
The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, LSEG flows data, information from companies that track flows such as Kpler and Petro-Logistics, and information provided by sources at oil companies, OPEC and consultants.