OPEC oil production saw a rebound in October, recovering from its lowest point this year, thanks to Libya’s resolution of a political crisis that had disrupted its oil sector. The crisis, which centered on control of the Central Bank, was temporarily eased, allowing the country to restore its oil output, according to a report by Reuters.
Libya’s oil production has fully recovered after the eastern-based government and the Tripoli-based National Oil Corporation (NOC) announced the reopening of oilfields and export terminals last week. Prior to the shutdown of key fields, including Sharara, El Feel, and Essider, Libya was producing around 1.2 million barrels per day. Production had been halted in late August.
In September, Libyan crude exports averaged 460,000 barrels per day (bpd), as reported by oil analytics firm Kpler. OPEC‘s overall production increased to 26.33 million bpd in October, marking a rise of 195,000 bpd from September’s output. This was also about 46,000 bpd above the group’s target for the nine members bound by supply cut agreements, with Gabon surpassing its target by the largest margin.
Meanwhile, Venezuela also saw an increase in crude output, reaching 860,000 bpd in October, the highest level in four years. Both Libya and Venezuela are exempt from OPEC+ production cut agreements.
However, the increases from Libya and Venezuela were partially offset by significant declines in exports from Iraq and Iran. Iraq’s output dropped to 3.98 million bpd due to a fall in production from northern Iraq and reduced domestic consumption, according to the Reuters survey.
OPEC+ has also supported oil prices by delaying planned production hikes. OPEC Secretary General Haitham Al Ghais defended this decision, stating that it is in line with OPEC+’s usual approach and has been part of the group’s strategy since its agreement was established. Al Ghais dismissed concerns over weakening oil demand, criticizing the “doom and gloom” outlook from some market analysts.
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