Bloomberg News

OPEC October Oil Output Rose as Libya Offsets Saudi Arabia Cuts

November 09, 2011

Nov. 9 (Bloomberg) -- OPEC’s crude production rose in October as higher Libyan output offset cuts in Saudi Arabia, Nigeria and Venezuela, the group’s secretariat said.

The 11 members of the Organization of Petroleum Exporting Countries bound by quotas produced 27.27 million barrels a day in October, Vienna-based OPEC said today in its monthly oil market report. Production climbed from 27.18 million barrels in September, OPEC said, citing secondary sources for the data.

OPEC Secretary-General Abdalla el-Badri said yesterday that the global oil market is “balanced” as reductions were being made to accommodate increasing supplies from Libya. Saudi Arabia cut output by 0.7 percent to 9.47 million barrels a day last month, while Venezuelan trimmed supply by 1.5 percent to 2.38 million barrels, according to the report.

Nigeria reduced supply by 3.4 percent to 2.01 million barrels, OPEC said. Royal Dutch Shell Plc declared force majeure on exports of the African nation’s Forcados crude on Oct. 10 after an explosion on a pipeline.

OPEC, provider of about 40 percent of the world’s crude, announced its biggest-ever supply cuts in late 2008 amid a collapse in global demand. The decision capped production at 24.845 million barrels a day for all members except Iraq.

The group’s compliance with those cuts fell to 42 percent in October from a revised 44 percent the previous month, according to Bloomberg calculations. Compliance is based on combined output from the 11 members that committed to reduce from a base rate in September 2008 of 29.045 million barrels.

Libya produced 350,000 barrels a day in October, up from 86,000 barrels the previous month. The North African country was producing 1.6 million barrels a day before the start of this year’s rebellion that ousted Muammar Qaddafi.

OPEC’s production including Iraq was little changed on the month at 29.89 million barrels a day, the data show. Iraq is exempt from the quota system. The group’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

--Editors: Raj Rajendran, Randall Hackley

To contact the reporter on this story: Rachel Graham in London at rgraham13@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


Best LBO Ever
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus