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Driven by a faster-than-expected return of Libyan oil production, OPEC’s crude oil production increased by 750,000 barrels per day (bpd) in November, the fifth consecutive increase in the cartel’s production, according to the monthly Reuters survey.
OPEC’s 13 members produced a total of 25.31 million barrels a day in November, a whopping 750,000 barrels a day since October as Libya’s oil production increased by nearly 700,000 barrels a day, according to the ‘Reuters survey of ship tracking data and OPEC sources, consultants, and oil companies.
OPEC crude oil production in November was the fifth increase in production from the low of 22.69 million barrels per day the cartel was expected to reach in June, the lowest level of OPEC production since the 1991 Gulf War. .
According to the November Reuters poll, Saudi Arabia’s largest producer kept its production stable compared to October, as did Kuwait. The United Arab Emirates (UAE), which is said to be reconsidering its position in OPEC, increased its oil production by 90,000 barrels per day, but was meeting the quota.
Libya, exempted from OPEC + production cuts, has alone offset compliance with the cuts, which, according to the Reuters survey, stood at 102 percent in November. Related: Has Asia Lost Interest in North Sea Oil?
According to the survey, the production of the other two OPEC members exempted from the OPEC + pact – Iran and Venezuela – also increased.
Libyan oil production has returned to 1.25 million barrels per day, the level it was pumping before the blockade of ports in January. This poses another conundrum for OPEC and OPEC + members whose energy ministers virtually meet on Monday and Tuesday to decide how to proceed with the current production cuts. Libya has said it will not adhere to OPEC + quotas until its production stabilizes at 1.7 million barrels per day.
The surge in Libyan production and the weaker outlook on oil demand in the face of rising COVID-19 cases in major developed economies are complicating OPEC + ‘s task this week. The market largely expects the current cuts of 7.7 million barrels per day to be rolled over for another three months in March 2021, instead of being cut by 2 million barrels per day from January 2021, as originally planned.
By Tsvetana Paraskova for Oil “
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