Sunday 24 September 2017

OPEC cuts output to lowest in two years

Oil output dropped below the organisation's 30 million barrel-a-day ceiling for a third month
Oil output dropped below the organisation's 30 million barrel-a-day ceiling for a third month

Lananh Nguyen

OPEC reduced crude production in November to the lowest level in more than two years as output dropped below the organisation's 30 million barrel-a-day ceiling for a third month.

The Organisation of Petroleum Exporting Countries pumped 29.63 million barrels last month compared with 29.83 million in October, OPEC said in its monthly oil market report. That's the lowest since May 2011. The group decided to maintain its output limit of 30 million at a meeting in Vienna last week because members were "all satisfied", according to Ali al-Naimi, Saudi Arabia's oil minister.

"In taking this decision, member countries reconfirmed their readiness to promptly respond to unforeseen developments that could have an adverse impact on an orderly and balanced oil market," OPEC said in yesterday's report.

Analysts predict that some members of OPEC, notably Saudi Arabia, will probably need to reduce output in 2014 to prevent a global glut. The US is producing the most oil in a quarter-century, while Iraq, Libya and Iran have said they plan to increase exports in the next several months.

Yesterday's OPEC report was published before the head of Libya's Petroleum Facilities Guard, Brigadier Idris Bukhamada, said that three oil ports in eastern Libya will reopen on Sunday. The ports, including Es Sider, the largest, had been closed since late July. (Bloomberg)

Irish Independent

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