Mubasher: Several members of the Organization of Petroleum Exporting Countries (OPEC) have supplied the market with more barrels in September in a bid to compensate the shortfall in the production from Iran, OPEC’s third-largest producer.
OPEC produced roughly 32.8 million barrels per day (bpd) last September, 132,000 bpd more than August, according to figures based on several independent sources in the producer group’s monthly report.
Saudi Arabia added 108,000 bpd to the market last month, bringing its total monthly production to 10.5 million bpd.
These figures followed Saudi Energy Minister Khalid al Falih’s recent announcement that his country would produce 10.7 million bpd in October and would ramp up output again next November.
Libya pumped 103,000 bpd to the market, as the oil-rich nation’s production, which fluctuated during the internal conflict, on track to recover.
Saudi and Libyan supplies helped offset a shortfall of 150,000 bpd of Iran, where output waned to 3.4 million bpd as importers cut their purchases from the country before the US sanctions against Tehran kick in on 4 November.
Venezuelan supplies continued to drop as the nation is grappling with an economic crisis.
In addition, production increases from Angola, Nigeria, and the UAE boosted collective OPEC production, while the output from other group members remained almost steady.
OPEC warned that the global economic growth prospects are starting to diverge following a period of synchronised expansion.
“Global economic growth remains solid, but is facing potential headwinds,” OPEC said.
Tighter monetary policies in developed countries, weakening financial conditions in several developing nations as well as trade tensions and geopolitical threats remained a challenge for the world’s economic growth.
“While growth in the major OECD [Organisation for Economic Co-operation and Development] economies remains well supported, decelerating trends have become visible in some emerging markets and developing countries,” the bloc said.
In addition, global crude demand is currently expected to grow by 1.54 million bpd this year, down 80,000 bpd from its last estimate.
However, it raised its supply growth projections from non-OPEC producers by 200,000 bpd to a total of 2.22 million bpd.
For the next year, the group expected oil consumption to grow by 1.36 million, 50,000 bpd lower than its latest forecast, while it slashed its outlook for non-OPEC supply growth by 30,000 bpd to 2.12 million bpd.
Moreover, judging by the trend in the third quarter, OPEC saw some weakness in the global market for crude this winter, largely owing to the lower demand for diesel in Europe.
By 1:53 pm GMT, global benchmark Brent futures tumbled 1.65% to $81.72 per barrel (pb), while US Nymex crude futures fell 1.35% to 72.18 pb.
