• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 1 hour Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 3 hours The World is Facing a Solar Panel Waste Problem
  • 14 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 13 hours Rational analysis of CV19 from Harvard Medical School
  • 13 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 8 hours The Core Issue Of US Chaos..Finally disclosed
  • 2 hours Brent above $45. Holding breath for $50??
  • 11 hours Open letter from Politico about US-russian relations
  • 12 hours China's impending economic meltdown
  • 13 hours Why Oil could hit $100
  • 8 hours Pompeo upsets China; oil & gas prices to fall
  • 11 hours Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
  • 1 day End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
Oil Drops As Demand Recovery Stalls

Oil Drops As Demand Recovery Stalls

After rising at the start…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil Falls As OPEC Production Hits Record In September

The International Energy Agency reported today that crude oil output in OPEC reached a new record of 33.64 million barrels per day, causing crude oil prices to tick back down after they reached a one-year high on Russian President Putin’s announcement that the oil giant would join freeze talks with OPEC.

Oil supply went up by 600,000 bpd globally in September, with non-OPEC supply rising by half a million barrels daily thanks to output increases in Russia and Kazakhstan.

World daily production in the reported month reached 97.2 million barrels, a 200,000-bpd increase on September 2015.

The IEA noted that OPEC was the main contributor to this annual growth.

Iraq achieved historic highs in production in September, and Libya reopened its export terminals and restarted production at some fields. The combined monthly increase in OPEC production in September stood at 160,000 bpd. Supply from the organization was 900,000 bpd higher than in September 2015.

For August 2016, the IEA reported a 300,000-bpd annual decline in global supply, thanks to output cuts outside OPEC.

On the demand side, the international watchdog said this year should see a 1.2-million barrel increase, keeping the same rate in 2017, too. In the third quarter of 2016, demand growth is estimated to have fallen to the lowest quarterly rate since 2012, on the back of an economic slowdown in OECD countries and a similar pattern in China, but in Q4 it should recover somewhat as the winter season in the northern hemisphere begins. Related: Are U.S. Oil Assets Too Expensive For Oil Traders?

Now that OPEC is discussing a possible freeze output, the latest from the IEA puts even more emphasis on the question of whether a freeze would be meaningful at all at these record-high levels of production. The cartel has scheduled several meetings in the coming weeks, before its November 30 get-together in Vienna, and any word that comes out of it is likely to swing markets immediately.

At the time of writing, Brent crude was trading at US$52.54 a barrel, down 1.13 percent from yesterday’s close, and WTI was changing hands at US$50.68 a barrel, down 1.3 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News