Reuters: OPEC oil production continues to rise due to Libya and Iraq

OPEC’s oil production rose for the fourth month of October, according to the results of a Reuters investigation, due to the re-commissioning of more Libyan facilities and increased Iraqi exports.

Reuters said the increase nullified the rest of the membership’s total commitment to the organization-led supply reduction deal.

According to the survey, the 13-member Organization of the Petroleum Exporting Countries pumped an average of 24.59 million barrels per day during the month of October, an increase of 210,000 barrels per day from September, and a new boost from the three-decade low recorded in June.

Oil prices fall under the weight of an increase in OPEC supply and a further blow to demand from rising coronavirus infection, leading to an 8% loss of crude in October, approaching around $ 37 a barrel.

Some analysts say this puts pressure on OPEC and its allies, known as the OPEC + group, to delay the increase in supply scheduled for January 2021.

“Oil demand is not favorable at the moment … at a minimum, OPEC will have to extend its current production levels until the end of March,” said Stephen Brennock of BPM Brokerage.

OPEC + had reduced an unprecedented volume of 9.7 million barrels per day, the equivalent of ten percent of global production, in May, in light of the pandemic that has hit demand.

Since August, the group has been pumping more quantities after reducing the amount of the reduction to 7.7 million barrels per day, of which OPEC’s share is 4.868 million barrels per day.

A further increase of 2 million barrels per day is slated for January, although Saudi Arabia and Russia support further cuts to their current levels, OPEC sources say.

In October, the commitment of OPEC countries bound by the reduction agreement reached 101 percent of the reduction promised, according to the survey, i.e. unchanged from September.

Source: Reuters

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