OPEC oil output hits new record on increased Nigeria, Libya supplies

OPEC’s oil output is likely to set another record high in October, a Reuters survey found on Monday, as Nigerian and Libyan output partially recovered from disruptions and Iraq boosted exports.

The rise in output could add to scepticism about OPEC’s ability to finalize a plan agreed in September to limit supplies. Oil, which rallied to a 2016 high near $54 a barrel following the decision, has since slipped toward $48. In October, the increase was led by Nigeria, Libya and Iraq. Supply in Nigeria, where output had fallen due to militant attacks on oil installations, rose as exports of Qua Iboe and Forcados crude resumed.

Supply from the Organization of the Petroleum Exporting Countries has risen to 33.82 million barrels per day (bpd) in October from a revised 33.69 million bpd in September, according to the survey based on shipping data and information from industry sources. That would be 820,000 bpd above the top end of a target output range OPEC agreed to adopt at a Sept. 28 meeting. According to analysts, production near 34 million bpd would prolong the supply surplus weighing on the market.

 

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