OPEC raised its September crude oil output to the highest level since 2020, according to a Reuters survey released on Friday, but fell short of its September quota.
OPEC’s production for September fell below its specified quota for the month, although the monthly production increase was above the promised rise of 64,000 bpd.
The survey found that OPEC’s September production reached 29.81 million bpd, an increase of 210,000 bpd from August. For its 10 members participating in the OPEC cut, September production was 130,000 bpd from August levels, but still below their full production targets.
For September, the survey found that the 10 participating members of OPEC’s production pact under-produced their target of 1.32 million bpd, an improvement from their shortfall of 1.4 million bpd in august.
As widely expected, Saudi Arabia managed to increase its production by 50,000 bpd for September, meeting its target of 11 million bpd. The United Arab Emirates and Kuwait also achieved their targets.
Iraqi production has “changed little” according to Reuters.
Libya and Nigeria, exempt from the OPEC production agreement, increased their production, contributing to the increase in the group’s overall production.
OPEC+ has reportedly narrowed its options for November production plans and is currently discussing a production cut of between 500,000 bpd and 1 million bpd, a Reuters source said on Friday. The expanded OPEC+ group is due to meet on October 5 to formalize its plan for November.
Earlier this week, Russia reportedly recommended the group cut production by 1 million bpd.
There are signs that OPEC+ is ready to defend somewhere near $90 oil. Currently, the benchmark Brent is trading at $88.30 a barrel, down despite the heightened geopolitical situation with Russia and Ukraine, the tight market and heightened tensions related to the Nordstream 1 and 2 gas pipeline explosions.
By Julianne Geiger for Oilprice.com
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