Opec oil output rises to highest since 2016

Opec has boosted oil production in October to the highest since 2016, a Reuters survey found, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to US sanctions.

The 15-member oil producers’ cartel has pumped 33.31 million barrels per day this month, the survey on Wednesday found, up 390 000 bpd from September and the highest by Opec as a group since December 2016.

Opec agreed in June to pump more oil after pressure from US President Donald Trump to curb rising prices and make up for an expected shortfall in Iranian exports. Oil hit a four-year high of $86.74 (R1 278) a barrel on October 3 but has since eased to $76 as concerns over tight supplies faded.

“Oil producers appear to be successfully offsetting the supply outages from Iran and Venezuela,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.

The June pact involved Opec, Russia and other non-members returning to 100 percent compliance with output cuts that began in January 2017, after months of underproduction in Venezuela, Angola and elsewhere had pushed adherence above 160 percent.

In October, the 12 Opec members bound by the supply-limiting agreement lowered compliance to 107 percent as production rose, from a revised 122 percent in September, the survey found.

This is the closest Opec has moved to 100 percent compliance since the June agreement.

– Reuters

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