In October, OPEC’s oil output witnessed a rise from its lowest level in the previous month of this year, as per a Reuters survey. The increase came about as Libya managed to resolve a political crisis, although Iraq’s efforts to meet its pledged production cuts for the broader OPEC+ alliance somewhat limited the overall gain.
The Organization of the Petroleum Exporting Countries pumped 26.33 million barrels per day last month, which was 195,000 bpd more than in September. Libya had the most significant increase in output. After the resolution of a dispute regarding the control of the central bank, Libyan production recovered, enabling full production to resume at its oilfields. This extra supply added downward pressure to oil prices that were already being affected by concerns over global demand.
Venezuela also saw an increase in output, with crude production reaching 860,000 bpd, the highest since at least 2020 based on Reuters surveys. Both Libya and Venezuela are exempt from the agreements to limit production within OPEC and its allies, known as OPEC+.
Among the countries with lower output, Iraq and Iran had the most notable declines. Iraq cut its output to 3.98 million bpd, below its OPEC+ quota, due to lower exports and domestic consumption along with a drop in production in northern Iraq. Iran, which has been increasing exports in recent years despite ongoing U.S. sanctions, experienced a sizeable drop in exports in October.
The survey also found that OPEC pumped around 46,000 bpd more than the implied target for the nine members covered by supply cut agreements, with Gabon exceeding its target by the largest amount. The Reuters survey tracks supply to the market using shipping data from external sources, financial group LSEG flows data, information from companies like Kpler and Petro-Logistics that monitor flows, and details provided by sources at oil companies, OPEC, and consultants.
OPEC October Output: Libyan Rebound and Iraqi Cut Impact Oil Supply Picture