OPEC+ crude oil output ticked up 210,000 b/d in October, the latest S&P Global Platts survey found, as the alliance readies to set production levels for 2021 in what may be an increasingly oversupplied market.
OPEC’s 13 members pumped 24.54 million b/d, while nine allies, led by Russia, that have been coordinating supply with the organization since 2017 added 12.73 million b/d, according to the survey.
War-weary Libya, which is exempt from having an OPEC+ quota as it seeks to put years of war and instability behind it, was largely responsible for the output gains, almost tripling its output to 460,000 b/d in October – the country’s highest production since January.
Its state-owned National Oil Corp. on Nov. 7 reported that it was now producing more than 1 million b/d, as a tenuous ceasefire between rival groups has allowed fields and ports to reopen.
Libya’s robust comeback will add pressure on the OPEC+ coalition’s efforts to rebalance the market after the crash caused by the coronavirus pandemic.
The alliance, which controls about half of global oil supply, is already grappling with a stalling recovery in demand that could be exacerbated by another round of lockdown measures in major economies, and the apparent victory of Joe Biden over Donald Trump for the White House could see the US ease sanctions on Iran, eventually paving the way for more of its barrels to hit the market…
