OPEC missed its oil production target in October

OPEC crude oil production rose 217,000 bpd (bpd) to 27.453 million bpd in October, but still falls short of the cartel’s share in the 400,000 bpd increase in total production. OPEC + group.

Under the OPEC + agreement, the ten OPEC members bound by the OPEC + pact are expected to increase their combined production by 254,000 bpd each month.

Still, estimates from secondary sources in the OPEC Monthly Oil Market Report (MOMR) released on Thursday continued to show what analysts, oil tanker tracking companies and previous OPEC monthly reports have shown: the agreement did not reach its collective production quota—Mainly due to a lack of capacity among some members to pump crude oil up to their respective quotas.

As OPEC’s largest producer and the world’s largest oil exporter, Saudi Arabia, pumped almost in line with its quota and increased its crude output by 110,000 bpd, several African members not only did not meet their quotas, but they also saw their respective production fall in October compared to September.

Saudi Arabia’s crude oil production stood at 9.759 million barrels per day, and the Kingdom was understandably the producer with the largest monthly increase. But Nigeria, Gabon and Equatorial Guinea saw their production drop last month. The biggest drop was in Nigeria, whose production fell from 45,000 b / d to 1.354 million b / d, according to OPEC secondary sources. Nigerian production was more than 200,000 b / d below its cap of 1.6 million b / d. Nigeria is struggling to meet its quota as frequent force majeure events have also contributed to production far below that allowed under the OPEC + deal.

At the end of October, Shell’s Nigerian unit declared a force majeure on loadings of Bonny Light crude, following the closure of the Nembe Creek Trunk Line (NCTL) by operator Aiteo Exploration and Production Limited.

Elsewhere among African members, combined crude production in Gabon and Equatorial Guinea fell 30,000 bpd in October compared to September.

OPEC members who increased their respective production last month included the three producers exempt from OPEC + cuts: Venezuela, Iran and Libya. Venezuela increased its oil production by 57,000 bpd per secondary source in the OPEC report. Iran and Libya saw smaller increases of 10,000 bpd and 15,000 bpd. Since the production of these three countries is not part of the OPEC + agreement, the production increase of 217,000 b / d of OPEC-13 becomes even smaller when it is limited to the 10 members making up part of the OPEC + pact.

By Tsvetana Paraskova for OilUSD

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