OPEC+ Output Fell 73,000 Bpd in October

VIENNA (DTN) — Combined crude oil production by members of the Organization of Petroleum Exporting Countries and its partners surprisingly fell last month, despite a 137,000-bpd increase in production targets, according to the organization’s latest monthly oil report published Wednesday (11/12). The decline was spearheaded by a 155,000-bpd decrease in Kazakh crude oil production, as its main Tengiz field was under maintenance. Output from members of the Declaration of Cooperation, the OPEC+ group excluding Libya, Venezuela and Iran, rose by 31,000 bpd month-on-month.

OPEC+’s so-called group of eight – member countries which had agreed to hike output by 137,000 bpd in October, was up 25,000 bpd from September as the drop in Kazakh production cancelled out increases from Russia, Saudi Arabia and Iraq. The production estimates are based on secondary sources as opposed to direct communication from member countries.

OPEC’s latest report left global oil demand growth forecasts for this and next year unchanged at 1.3 million bpd and 1.38 million bpd, respectively. Despite this, the report for the first time flagged a market surplus in the third quarter on the back of rising U.S. production, joining forecasting agencies like the International Energy Agency and the U.S. Energy Information Administration.