Press

OPEC Pumped 32.66 Million b/d In September, pP 10,000 b/d From August: S&P Global Platts Survey


 

     * Venezuelan output slumps to 1.86 mil b/d

     * Libyan output recovery still volatile, production up 80,000 b/d

     * Saudi output 10 mil b/d; Iraq 4.50 mil b/d; Iran 3.83 mil b/d

     * OPEC compliance from Jan-Sep 106%                            

     OPEC oil output in September rose marginally by 10,000 b/d, as production

increases in Libya and Iraq were largely offset by declines in Venezuela and

Angola, an S&P Global Platts survey of OPEC and oil industry officials and

analysts showed Friday.

     OPEC's 14 members saw their collective September output rise to 32.66

million b/d from 32.65 million b/d in August.

     That is some 740,000 b/d above its declared ceiling of about 31.92

million b/d, when Equatorial Guinea, which joined in May, is added in and

Indonesia, which suspended its membership in December, is subtracted.

     OPEC announced the ceiling as part of a production cut agreement with 10

non-OPEC members, led by Russia, that calls on the entire group to lower

output by 1.8 million b/d.

     Libyan oil output rose in September by 80,000 b/d to 910,000 b/d, as the

key Sharara field, which has a full capacity of 300,000 b/d, was producing

about 200,000 b/d for most of the month after the field was down from August

19 to September 5.

     But the North African country's output recovery remains fraught with

challenges as the security of many fields remains volatile due to threats from

a militant group.

     Iraqi compliance with its quota under the production cut deal remains

among the weakest of the OPEC members, with production averaging 4.50 million

b/d in September, still 149,000 b/d above its output quota.

     Iraqi production rose 40,000 b/d from August on increased exports from

the southern terminals on the Persian Gulf and increased refinery consumption.

    

     VENEZUELA DECLINE

     Venezuelan production fell 40,000 b/d to 1.86 million b/d in September,

the survey found, as the country's crude exports dipped and its imports of

diluents to blend with its heavy crude were also curtailed due to Hurricane

Harvey.

     The decline in Venezuela's output has accelerated in the past several

months as various refinery units and heavy crude upgraders have been shut

down, exacerbated by the country's deepening economic crisis.

     Angolan output fell 30,000 b/d to 1.64 million b/d as exports and

production of grades such as Pazflor, Dalia, and Plutonio were down, according

to the survey.

     Nigerian production, meanwhile, fell 20,000 b/d to 1.84 million b/d in

the month, as key grade Bonny Light has been on force majeure since September

16 following the shutdown of the Nembe Creek Trunk Line.

     Output in OPEC's largest producer Saudi Arabia was down 10,000 b/d to 10

million b/d, as despite a slight rise in exports, the end of summer resulted

in lower direct crude burn, survey participants said.

     Iranian output in September was stable at 3.83 million b/d, as despite a

marginal rise in crude oil exports, refinery utilization fell, keeping

production steady.

     The country's oil minister Bijan Zanganeh insisted there was no pressure

on Iran to join the cuts.

     Iran's output has averaged 3.780 million b/d over the first eight months

since the deal came into effect in January, 17,000 b/d below the country's

official allocation of 3.797 million b/d.

    

     MARKET STRUCTURE

     According to an average of January through September production, total

compliance among the 12 countries with quotas under the output cut agreement

is 106%.

     But that figure is boosted by strong overcompliance in the early part of

the year, as discipline has slipped in recent months. September compliance

among the 12 countries with quotas was 102%, rebounding from a low of 93%

in July.

     For OPEC as a whole, the significant recoveries in exempt Libya and

Nigeria have undone a big chunk of the cuts. The combined Libya and Nigeria

output for September is 430,000 b/d higher than it was in January, according

to survey data.

     The last few months have seen some positives for OPEC, notably falling

stock levels along with a stronger oil market structure supported by higher

global demand.

     This also translated in higher oil prices, with ICE Brent rising to over

two-year highs of around $59/b in late-September. But prices have since fallen

to $56-$57/b as concerns of surging US oil output and exports have re-emerged.

     The clamor to include exports as a monitoring mechanism has also grown,

after ministers on the monitoring committee, said they would now incorporate

export data to bolster trader confidence that the cuts are in fact lowering

supplies to the market.

     But some members remain hesitant about including exports due to the

difficulty in tracking them accurately, as well as the lumpy nature of

exports from month to month.

 

* Equatorial Guinea figure is only June-September production, as the country

joined OPEC on May 25.

 

Notes: On May 25, OPEC and 10 non-OPEC producers decided to extend their

existing production cuts by nine months -- a move that would keep nearly 1.8 

million b/d of crude oil off the market through March 2018.                  

     The agreement exempts Libya and Nigeria, while allowing Iran a small    

increase in production.                                                       

     Indonesia suspended its OPEC membership on November 30.           

     The estimate for Iraq includes volumes from semi-autonomous Iraqi       

Kurdistan.                                                                   

     Equatorial Guinea became OPEC's smallest oil producer on May 25, when its

application to join OPEC was approved, bringing the oil producer bloc's      

membership up to 14.                                                         

     OPEC's next formal meeting is November 30 in Vienna.                 

 

 



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

https://platts.com/news-feature/2017/oil/opec-guid...

OPECS&P Global PlattsVenezuelaAngola

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 1 month agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 5 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 9 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 9 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 9 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice