OPEC October oil output jumps on swift Saudi recovery -Reuters survey

Published 31/10/2019, 16:43
© Reuters.  OPEC October oil output jumps on swift Saudi recovery -Reuters survey
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* Saudi oil output rises by 850,000 bpd

* Nigeria still exceeds new, higher quota

* Ecuador posts OPEC's biggest supply drop due to protests

* Output by country, compliance: By Alex Lawler

LONDON, Oct 31 (Reuters) - OPEC oil output has bounced in

October from an eight-year low as a rapid recovery in Saudi

Arabian production from attacks on oil plants more than offset

losses in Ecuador and voluntary curbs under a supply pact, a

Reuters survey found.

The 14-member Organization of the Petroleum Exporting

Countries (OPEC) has pumped 29.59 million barrels per day (bpd)

this month, the survey showed, up 690,000 from September's

revised figure which was the lowest monthly total since 2011.

Initially expected to take months, Saudi Arabia's production

recovery from the Sept. 14 attacks took only weeks. Oil LCOc1

has slipped to $60 a barrel after a spike to $72 following the

attacks, and analysts expect the kingdom to continue its efforts

to support the market.

"Saudi Arabia will step up its production cuts if necessary

in order to keep the oil market balanced and ensure at least

stable prices," said Carsten Fritsch, analyst at Commerzbank.

OPEC, Russia and other oil producer allies, known as OPEC+,

are reducing 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 11 OPEC members bound by the agreement, which now runs

until March 2020, have been easily exceeding the pledged cuts.

Compliance has fallen to 140% in October due to the rise in

Saudi output, the survey found, from 222% in September.

OPEC's largest production drop was in Ecuador, which on Oct.

9 halted crude sales because at least 20 fields suspended

operations amid protests against government austerity measures.

State oil company Petroecuador resumed crude exports on Oct.

20. BOOST

Saudi Arabia has pumped 9.90 million bpd, up 850,0000 bpd

from September, the survey found.

Before last month's attack, Saudi Arabia was already

restraining output by more than called for by the OPEC-led

supply deal to support the market. The country is still pumping

more than 400,000 bpd less than the agreement allows it to.

Supply increases elsewhere in the group were much smaller.

Venezuela, which is contending with U.S. sanctions on state

oil company PDVSA and a long-term decline in output, managed to

boost supply. A domestic refining complex resumed production

and, sources said, exports increased in October.

Production in the two other exempt producers, Libya and

Iran, was little changed.

The United Arab Emirates has lifted exports, according to

traders and a company that tracks shipments. Still, oil

production was only up slightly in October.

After Ecuador, OPEC's next largest supply drop was in Iraq,

which has exported less crude from its northern ports according

to the survey. OPEC's second-largest producer is continuing to

exceed its OPEC target.

Nigeria, which has consistently been pumping more than its

OPEC target, continued to do so in October, the survey found.

Nigeria's rate of compliance improved because the country

received a higher target under the deal, details of which became

public earlier this month. September's output was the lowest by OPEC since 2011, when

the Libyan civil war caused a collapse in the country's oil

output, excluding membership changes that have taken place since

then, according to Reuters surveys.

The 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.

(Editing by Lisa Shumaker)

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