The restart of Libyan oil facilities and higher Iraqi exports contributed to the increase of OPEC crude production in October, according to a Reuters survey. The 13 OPEC members pumped 24.59 million bpd of oil last month, rising by 210,000 bpd from September and marking a fourth consecutive month of production increment. OPEC’s higher output and resurging COVID-19 cases drove oil prices to fall by 8% to around $37/barrel last month.
OPEC and its allies slashed 9.7 million bpd of production from May to balance the oil market amid the impact of the coronavirus pandemic. The alliance tapered the supply curbs to 7.7 million bpd since August and plans to ease supply limits further by 2 million bpd in January. However, renewed virus fears put this plan under pressure, analysts said.
Libya, which is under a waiver from the supply cut deal, pumped 250,000 bpd more crude oil in October, a faster recovery than previously estimated. Iraq increased exports from its southern terminals, but compliance remained around 100%. Saudi Arabia and Kuwait kept their exports steady. Meanwhile, Iran and Venezuela, which are also under an exemption from the supply cut deal, posted declines in crude exports. The UAE reduced output by the most last month, suggesting that it was still compensating for overproduction in August.
