OPEC’s oil production has fallen to a near decade low for September, according to the latest Reuters survey, falling below 29 million barrels per day, with Saudi Arabia accounting for most of the output drop.
That’s a decline of 750,000 barrels per day on average, mostly from the decrease in oil production from OPEC heavyweight Saudi Aramco after its facilities were struck in an attack that Saudi Arabia and the United States has pinned on Iran.
The attacks on Saudi Aramco’s infrastructure took offline 5.7 million barrels per day on September 14, equivalent to 5% of the total global oil supply. While some estimates were that it could take Saudi Arabia months to restore production to pre-attack levels, within 9 days, 75% of the oil giant’s production had been restored. Just two days later, on September 25, Saudi Arabia has restored all of its production to pre-attack levels, according to chief executive officer of Aramco’s trading arm, Ibrahim Al-Buainain, as cited by Reuters.
OPEC oil output came in at an eight-year low for September, according to the Reuters poll, at 28.9 million bpd, with the cartel coming in at 218% compliance to its agreed production cuts that will run until March of next year. August’s compliance was 131%.
Saudi Arabia’s output was 700,000 bpd lower in September compared to August, at 9.05 million bpd, which it achieved by releasing oil barrels from inventory. According to the survey, Saudi Arabia’s production came in between 8.5 million bpd and 8.6 million bpd.
Other production decreases came from Venezuela as it struggles under growing oil inventories as more and more shippers refuse to transport the sanctioned country’s crude.
Nigeria increased its oil output, and its now the largest over producer in the group.
By Julianne Geiger for Oilprice.com
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