It turns out that oil output in OPEC jumped higher between August and September, mostly thanks to Iraq, which was able to resolve a pipeline issue that had hindered the country’s production recently.
OPEC is currently supplying 31.68 million barrels of oil per day, with daily production rising by nearly 1.5 million barrels since August.
As you know, oil prices have dropped precipitously over the last thirteen months, falling as low as $38 per barrel in late August, 2015. Of course, the fact that OPEC is desperately trying to curb production growth by allowing crude prices to remain cheap isn’t helping crude prices rally.
But while we are still bogged down by a supply glut currently, the good news is that the glut is expected to ease in 2016, thanks in part to declining production from non-OPEC countries.
Now, the fact that Iraq was able to boost output is impressive, yet even with this excess supply, its exports have remained unchanged.
But what about the rest of the oil cartel?
Output in Iran and Qatar is also on the rise, albeit considerably slower than Iraq’s. Not surprisingly, Iran is looking to reclaim its spot as OPEC’s second largest producer, which as you and I both know is only possible without sanctions weighing down the country’s oil industry.
Saudi Arabia, on the other hand, has been keeping output steady—a decision that continues to put downward pressure on oil prices. ‘s output is keeping steady, but has not increased, and it is still, of course, the top oil exporter in the world.
The Saudis were pumping out a record high 10.56 million barrels per day in June, 2015.
Kuwait, meanwhile, has also kept output consistent, even as the UAE decided to increase its daily production from the Upper Zakum field, an offshore field located west of Abu Dhabi.
On the contrary, with Libya, the supply actually decreased a bit. This is largely due to the country’s ongoing civil unrest, as well as its failed negotiations to reopen the country’s shuttered fields.
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Until next time,
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