The Organization of Petroleum Exporting Countries increased its crude oil output by 240,000 b/d during October to average 33.64 million b/d, OPEC said in its Monthly Oil Market Report on Nov. 11.
The cartel’s October production was above the high-end of a production range OPEC proposed at a September meeting in Algiers. Ministers are expected to discuss that proposed production cap of 32.5-33 million b/d during a Nov. 30 meeting in Vienna.
The OPEC report came a day after the International Energy Agency issued its own report of high OPEC production (OGJ Online, Nov. 10, 2016).
On Nov. 11, OPEC said its members produced almost 1 million b/d more than its anticipated 2017 demand for OPEC oil.
“Looking ahead, it is important to consider the immediate impact that the assumed global supply-demand balance has on inventories, given the expected demand for OPEC crude in 2017 of 32.7 million b/d,” OPEC said. “Adjustments in both OPEC and non-OPEC supply will accelerate the drawdown of the existing substantial overhang in global oil stocks and help bring forward the rebalancing of the market.”
Nigeria, Libya, and Iraq all reported increased production. These producers also have requested an exemption from any reduction in production quotas. Meanwhile, production in Angola showed the largest decline of OPEC members during October.