OPEC Production Falls While U.S. Oil Output Hits New High

OPEC's crude oil production fell in November for the first time in months, while U.S. oil output continued to reach new highs, OPEC said in its monthly report on Wednesday.

Total OPEC-13 crude oil production averaged 27.84 million barrels per day (bpd) in November 2023, down by 57,000 bpd from October, amid lower production from Iraq, Angola, and Nigeria, OPEC's Monthly Oil Market Report (MOMR) showed.

Venezuela and Libya, which are exempted from the OPEC+ deal, saw their crude oil production rise month-on-month, as did Kuwait, according to the secondary sources that OPEC uses to track its supply to the market.

Saudi Arabia, the leader of the cartel, increased its production slightly, by 12,000 bpd to 8.998 million bpd-in line with the Kingdom's pledge to pump around 9 million bpd as part of its voluntary cut of 1 million bpd, which was extended by the end of March 2024.

The official OPEC production numbers are in line with the Reuters survey from earlier this month, which showed that OPEC's oil production dropped in November for the first monthly decline since July as Nigeria and Iraq saw lower shipments.

At the same time, OPEC noted in its report that "US crude and condensate production as well as NGL output continue to reach new highs. Total US liquids output reached a record 21.6 mb/d in September due to persistent outperformance of onshore and offshore production."

OPEC expects U.S. liquids supply to grow by 1.3 million bpd in 2023.

The non-OPEC liquids supply growth forecast remains unchanged at 1.8 million bpd for 2023, driven by the U.S., Brazil, Kazakhstan, Norway, Guyana, Mexico, and China, the cartel said.

In a commentary on crude oil price movements in recent weeks, OPEC said that oil futures prices "experienced a significant downturn, marked by heavy selloffs amidst a highly volatile futures market."

"The market dynamic was fuelled by exaggerated concerns about oil demand growth, which negatively impacted market sentiment," the cartel noted.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

• Oil Prices Continue to Fall Ahead of the EIA Report and Fed Meeting
• China's EV Sector Will Become Self-Sufficient By 2060
• Investors Turn Bearish on European Natural Gas Amid Eased Supply Fears