LONDON (Reuters) – OPEC oil production increased for the fifth month in November as OPEC oil production compensated other producers’ full commitment to cuts agreed in an OPEC-led supply deal, according to a survey by Reuters.
The 13-member Organization of Petroleum Exporting Countries pumped 25.31 million barrels (bpd) per day in November, an increase of 750,000 barrels from October and another increase from a thirty-year low in June, according to the survey.
According to sources, OPEC, Russia and their allies, a group known as OPEC +, meet almost on Mondays and Tuesdays, and they are considering whether the existing limits will be extended due to weak demand, or whether they will gradually increase production from January.
“OPEC + does not seem to be able to reach an agreement, at least ahead of today’s meeting,” said Eugen Weinberg of Commerzbank.
“However, the oil market believes that current production cuts will continue for at least three more months,” Weinberg said.
Libya, an OPEC member exempted from OPEC + cuts, saw a recovery in production that was largely closed for months. This causes a headache for other manufacturers trying to manage supplies, as coronavirus lockdowns prevent a recovery in demand.
Meanwhile, it revealed that OPEC countries are bound by the supply agreement, continuing to cut more than agreed. Compliance with cuts remained at 102% in November compared to October.
Libya, a nation politically divided between east and west, has increased production since the eastern Libyan commander Khalifa Haftar said in September that his forces would lift the blockade of oil exports for eight months.
The survey found that production increased by about 700,000 barrels a day in November, and a faster recovery than some analysts and OPEC officials had expected.
According to the survey, two other OPEC members, Iran and Venezuela, who are exempt from supply cuts, also saw increases in production.
The United Arab Emirates raised supply by 90,000 barrels, the highest increase among OPEC countries restricted by quotas. However, it was still pumping below its target.
Among the countries that cut production, the biggest drop was in Nigeria due to unintentional shutdowns following pipeline explosions, while Iraq pumped slightly less.
The biggest exporter, Saudi Arabia, like Kuwait, kept production stable.
The Reuters survey is aimed at monitoring the market supply and includes shipping data provided by external sources, Refinitiv Eikon flow data, information from tanker trackers such as Petro-Logistics and Kpler, and oil companies, OPEC and consultants.
Journalism by Alex Lawler; Additional reporting by Ahmad Ghaddar and Rania El Gamal; Editing by Edmund Blair