The Organization of Petroleum Exporting Countries’ (OPEC) crude oil output fell by 193,000 barrels per day (bpd) to 29.55 million bpd in November compared to October, it said in a report on Wednesday, citing secondary sources.
This was mainly due to lower production in Saudi Arabia, Angola, Iraq and Iran, the report added.
Saudi Arabia, which is the largest crude oil exporter in the world, produced 9.89 million bpd in November, down 412,000 bpd from October.
At the same time, supply from non-OPEC countries rose by 61,000 bpd month-on-month to 70.22 million bpd, which is up 1.28 million bpd from last year’s levels.
“Trade issues not only led to reduction in global final consumption but also caused investment growth to decelerate,” the report said.
“On the positive side, global trade slowdown has likely bottomed out, and now the negative trend in industrial production seen in 2019 is expected to reverse in 2020,” it added.
OPEC did not change its forecast for non-OPEC supply growth in 2020, and continues to expect 2.17 million bpd in growth.
The organization expects a “continued” slowdown in growth on the back of decreased investment and lower drilling activities in US oilfields, the report said.
Supply bottlenecks, and increased emphasis on shareholder returns have prompted some US shale firms to scale back drilling activity.
Last week, OPEC and allied oil exporters took financial markets by surprise with a deeper-than-expected cut in oil supply, triggering a jump in prices.
The oil producing countries agreed to deepen an existing output cut deal by 500,000 bpd, bringing the total cut to 1.7 million bpd.
Crude oil futures prices rebounded in November to settle at their highest levels since July 2019, on a monthly basis, the OPEC report noted.
“Prices were mainly driven by optimism and positive expectations for a trade agreement between the US and China, as well as the improved outlook for global oil demand amid better-than-expected economic indicators in some major economies,” it added.