OPEC production economy is driven by a drop in Iraqi exports[/size]
2 hours ago
The survey concluded that OPEC's commitment to its commitments to restrict supplies rose to 92 percent in October from 86 percent in September, with Saudi Arabia, a major exporter of crude, continuing to pump oil at a pace below its OPEC level , While production fell again in Venezuela, which is experiencing an economic recession.
Prices have received support from declining Iraqi production. Brent crude has exceeded $ 60 a barrel, which Saudi Arabia considers a good level, for the first time since 2015.
The Organization of the Petroleum Exporting Countries (OPEC) is cutting production by 1.2 million barrels per day until next March as part of an agreement with Russia and other producers, who have also pledged to cut output.
Producers are expected to extend production cuts again after March 2018 when they meet on November 30.
"With the support of the Saudi and Russian leaders to extend production restrictions, the OPEC meeting next month is expected to be an event-free event," said Stephen Brinock of BPM Oil Brokerage.
"That is unless the Organization of Petroleum announced the largest cuts in production or restrictions on Libya and Nigeria members exempt from the agreement."
The biggest drop in production in October, 120,000 bpd, came from Iraq. Production and exports fell in northern Iraq in mid-month when Iraqi forces regained control of oil fields from Kurdish fighters they controlled since 2014.
Exports also fell from southern Iraq, the export port of most of the country's production, in the first three weeks of October But increased in the last week, highlighting an Iraqi plan to offset the impact of the decline in oil flows from the north of the country.
The drop means Iraq has achieved the highest level of commitment to cut output so far, according to Reuters surveys.
The survey showed that production in Venezuela, where the oil sector is suffering from a severe shortage of funds due to economic problems facing the country, has fallen again from the level set by OPEC. Exports and refinery operating rates fell in October.
Algerian oil production fell because of scheduled maintenance of oil fields, industry sources said.
The survey concluded that production from Libya and Nigeria stabilized little change in October. The production of the two countries exempt from the cut helped OPEC production reach the highest level for 2017 in July.
Nigeria's crude output fell by 70,000 bpd. The status of force majeure on exports of Bonny Light crude was announced in part of the month and traders say the loading of some other raw materials, including Khuma Eboue and Forcados, has been delayed.
By contrast, Libya pumped an additional 70,000 barrels per day this month, due to greater stability in production from the oilfield of Sharara, Libya's largest field. Libyan production is still volatile and is on average lower than its record levels earlier this year.
In the rest of the producer countries, the largest increase came from Angola, with exports expected to reach a 13-month high in October.
Saudi Arabia has increased its supply by 30,000 barrels a day, with exports increasing and the use of crude in local power plants reduced for seasonal reasons, according to sources in the survey.
OPEC last year announced a target production level of 32.50 million bpd based on low figures in Libya and Nigeria. The target level includes Indonesia, which has since left the organization but does not include Equatorial Guinea, the newest country to join the organization.
According to the survey, the average production in October was 32.65 million barrels per day, an increase of about 900 thousand barrels per day from the target level that was modified to delete Indonesia, which does not include Equatorial Guinea.
With the addition of Equatorial Guinea, total production in October was 32.78 million bpd, down 80,000 bpd from September.
The Reuters survey is based on navigational data provided by external sources, along with Thomson Reuters data and information provided by sources in oil companies, OPEC and consulting firms.