OPEC’s oil output increased for the second consecutive month in September, according to a Reuters survey. Nigeria and Iran led the rise, despite ongoing cuts by Saudi Arabia and other OPEC+ members. The survey reported a production of 27.73 million barrels per day (bpd) in September, a 120,000 bpd increase from August. This comes after the first rise in production since February was recorded in August. Nigeria’s boost in exports contributed significantly to the overall increase, while Iran also saw higher output levels despite U.S. sanctions.
Key Points:
- OPEC’s September production reached 27.73 million bpd, up 120,000 bpd from August, as reported by a Reuters survey.
- Nigeria saw a significant increase in exports in September, leading to a rise in output by 110,000 bpd, despite challenges with crude theft and regional insecurity.
- Iran continued to boost supply, achieving its highest output level since 2018, despite U.S. sanctions.
- Top exporter Saudi Arabia maintained output at around 9 million bpd in August and September, extending a voluntary 1 million bpd cut to support the market.
- Iraq and the United Arab Emirates saw slight increases in output, while Angola experienced the largest decline in the group, down by 50,000 bpd due to reduced exports.
- Overall, OPEC’s output is still approximately 700,000 bpd below the targeted amount, primarily due to capacity limitations in Nigeria and Angola.
Analysis: The rise in OPEC’s oil output, driven by Nigeria and Iran, showcases the complex dynamics within the organization. While some members continue to adhere to production cuts, others are ramping up output despite challenges such as sanctions and regional security issues. This variability in production levels underscores the intricacies of managing a diverse group of oil-producing nations with different economic and geopolitical considerations. OPEC’s ability to navigate these complexities will play a crucial role in shaping global oil markets in the coming months.
