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OPEC November oil output slips before Aramco IPO, policy meeting

Published 29/11/2019, 15:00
© Reuters.  OPEC November oil output slips before Aramco IPO, policy meeting
LCO
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* Saudi oil output edges lower after Oct recovery

* Nigeria still exceeds quota by largest margin

* Angolan output posts biggest drop due to maintenance

* Output by country, compliance: By Alex Lawler

LONDON, Nov 29 (Reuters) - OPEC oil output has fallen in

November as Angolan production has slipped due to maintenance

and Saudi Arabia has kept a lid on supply to support the market

before the initial public offering (IPO) of state-owned Saudi

Aramco, a Reuters survey found.

On average, the 14-member Organization of the Petroleum

Exporting Countries has pumped 29.57 million barrels per day

(bpd) this month, according to the survey. That is down 110,000

bpd from October's revised figure.

The survey suggests Saudi Arabia, after resuming normal

supply after attacks on facilities in September, is still

pumping far less than an OPEC-led supply deal allows. OPEC meets

to review the pact on Dec. 5, the same day Aramco is due to

announce the final offer price. OPEC, Russia and other allies, known as OPEC+, agreed to

reduce supply by 1.2 million bpd from Jan. 1. OPEC's share of

the cut is about 800,000 bpd, to be delivered by 11 members,

with exemptions for Iran, Libya and Venezuela.

The producers are expected to extend their supply pact at

meetings on Dec. 5-6. OPEC delegates have said the producers

could discuss deeper supply cuts amid forecasts of excess supply

in 2020. OPEC/M

"The minimum is to extend," said an OPEC delegate.

Oil LCOc1 has slipped to $63 a barrel after spiking to $72

following the Sept. 14 attacks on Saudi oil plants. The current

price is below the levels many OPEC countries need to balance

their budgets and below the levels officials say they favour.

The 11 OPEC members bound by the supply agreement, which for

now runs until March 2020, have easily exceeded the pledged

cuts. Compliance has risen to 152% in November, the survey

found, from 135% in October.

ANGOLAN DROP

OPEC's largest production drop of 140,000 bpd was in Angola,

which exported less crude in November due to maintenance

affecting the Girassol crude stream, traders said. The African producer was already pumping far below its OPEC

quota due to a natural decline in production and a lack of new

fields coming online, rather than due to voluntary restraint.

Saudi Arabia has pumped 9.85 million bpd, down 50,000 bpd

from October, the survey found.

Riyadh's output had jumped by 850,000 bpd in October after

the September attacks, but remained below Saudi Arabia's OPEC

quota. In November, the country has been pumping more than

400,000 bpd less than the agreement allows, the survey found.

OPEC's second-largest producer Iraq has pumped slightly

less, but continues to overshoot its target.

Nigeria, which has consistently pumped more than its OPEC

target, continued to do so in November, the survey found,

although output has edged lower this month.

Among countries pumping more, the largest increase was in

Kuwait, which increased output by 70,000 bpd to 2.72 million

bpd, reaching its exact quota level.

Ecuador also pumped more after a decline in October, when

protests against government austerity measures led to several

fields being shut down.

Venezuela, which is contending with U.S. sanctions imposed

on state oil firm PDVSA and a long-term decline in output,

managed a small boost to supply with exports increasing in

November.

Production from the two other exempt producers, Libya and

Iran, was little changed.

The Reuters survey aims to track supply to the market and is

based on shipping data provided by external sources, Refinitiv

Eikon flows data and information provided by sources at oil

companies, OPEC and consultants.

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