OPEC’s crude oil production dropped by 604,000 barrels per day (bpd) in September compared to August. This decline was primarily caused by a halt in Libya’s output due to a political standoff. Additionally, Iraq took steps to comply better with OPEC+ production cuts.
According to OPEC’s Monthly Oil Market Report (MOMR) released on Monday, all 12 OPEC member countries produced an average of 26.04 million bpd of crude oil in September. This is a decrease of 604,000 bpd from August, mainly due to a significant drop of 410,000 bpd in Libya’s production.
Libya, which is not bound by the OPEC+ agreement, saw its output fall to 540,000 bpd in September. This is less than half of the 1.2 million bpd the country was producing before a month-long crisis began at the end of August. However, production in Libya resumed in early October and has now increased to 1.3 million bpd.
In Iraq, OPEC’s second-largest producer, output fell by 155,000 bpd to 4.112 million bpd. Despite this decrease, Iraq’s production is still over 100,000 bpd above its commitment to keep output around 4 million bpd.
Saudi Arabia, OPEC’s largest producer, has continued to adhere to its target of approximately 9 million bpd. In September, Saudi production averaged 8.971 million bpd, down by 23,000 bpd from August.
Iran, which is exempt from OPEC+ cuts due to U.S. sanctions, increased its production by 21,000 bpd to an average of 3.316 million bpd, according to OPEC’s secondary sources, including consultancies.
Among non-OPEC producers involved in the OPEC+ agreement, crude oil production averaged 14.06 million bpd in September, an increase of 47,000 bpd compared to August. This rise was largely driven by an increase in Kazakhstan’s output, while production in Russia declined. Kazakhstan’s production rose by 75,000 bpd to 1.545 million bpd.
Iraq, along with non-OPEC producers Russia and Kazakhstan, has pledged to reduce overproduction and comply with OPEC+ agreements by September 2025.
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