A survey based on tanker tracking data, official information, and consultants’ estimates showed OPEC’s combined crude oil production rose 40,000 bpd to an average of 24.43 million bpd in September. The cartel, along with allies such as Russia, is curbing supplies to rebalance the market amid an unprecedented plunge in the global fuel demand. A significant reduction from the UAE helped to offset higher output from countries exempt from the deal.
The UAE over produced crude oil amid a peak demand during the summer month of August, drawing a rare rebuke from Saudi Arabia. The survey found that the country cut production by 310,000 bpd last month to 2.68 million bpd, remaining 90,000 bpd above its quota. However, the UAE has since late September throttled exports which are now at their lowest in 23 months.
Venezuela, Libya, and Iran are exempted from the deal due to economic sanctions and internal crises. The three countries collectively boosted output by 190,000 bpd. Venezuela led the increase with 90,000 bpd. However, its 400,000 bpd production rate was still below half of last year’s production. At the same time, the US will put tighter sanctions on the South American country in the coming months, which are expected to put Venezuela’s oil production under additional pressure.
Conflict-torn Libya achieved the first meaningful production increase in over a year after the conflicting parties agreed to lift the months-long blockade in the country’s oil terminals. Libya’s oil production increased by 70,000 bpd to 150,000 bpd in September. However, a separate survey showed that its production reached 300,000 bpd by the end of that month.
Iraq has previously pledged to cut production deeper to compensate for overproduction in the past months. OPEC’s second-largest producer managed to improve compliance in August but relapsed in September, with production rising by 90,000 bpd to 3.78 million bpd.
