Daily Management Review

OPEC reports oil production increase in September


OPEC oil production rose by 486,000 bpd to 27.33 million bpd in September, according to OPEC's monthly report.

Compared to August, oil production in September rose by 84,000 bpd in Iraq, by 139,000 bpd in Saudi Arabia, by 156,000 bpd in Nigeria and by 26,000 bpd in Kuwait, as well as in a number of other countries. Production in Libya was cut by 5 thousand bpd, 6 thousand bpd in Congo and 1 thousand bpd in Equatorial Guinea.

OPEC+ has reduced its production by 9.7 million bpd since last May due to a drop in oil demand caused by the coronavirus pandemic. As the situation stabilised, the deal was adjusted. And since August 2021, the alliance has been increasing production by 400,000 bpd each month, expecting to phase out its production cuts by the end of September 2022. 

Only 10 of the 13 countries are in the deal from OPEC; Iran, Venezuela and Libya are excluded. The benchmark for all is October 2018, with Russia and Saudi Arabia at 11 million bpd. However, from May 2022 an increase in the base of oil production reduction has been agreed for Russia, Saudi Arabia, the UAE, Iraq and Kuwait. For Russia and Saudi Arabia it will rise to 11.5 million bpd.

The organisation also lowered its 2021 and 2022 external oil production forecasts by 210,000 and 130,000 bpd respectively, to 63.64 million bpd this year and 66.66 million bpd next year.

source: reuters.com