Saudi oil output seen at 9.86 mln bpd in October, November: Energy Minister

Saudi Energy Minister said the country's oil output will recover to 9.86 mln bpd. Output fell in September following the attacks. (File photo: Reuters)

Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday that the country's oil output will recover to 9.86 million barrels per day in October and November, after it declined last month following attacks on its energy installations.

September oil production in Saudi Arabia, the world's largest oil exporter, fell by 660,000 barrels per day (bpd) from August to 9.13 million bpd in the wake of the attacks.

The Sept. 14 attacks targeted two of state oil producer Saudi Aramco’s plants, initially knocking out half of the kingdom’s oil production or 5 percent of global output.

Speaking to reporters, Prince Abdulaziz said that Saudi Arabia will reach an oil production capacity of 12 million bpd by the end of November, while its current exports stand at around 6.9 million bpd and will remain at this level until the end of the year.

Prince Abdulaziz replaced Khalid al-Falih as Saudi energy minister last month. “It is my job to ensure that oversupply does not continue,” he said when asked about his expectations for 2020.

Saudi Arabia will continue with voluntary output cuts - part of a global deal by producers aimed at propping up prices - of around 400,000 bpd, he added

Compliance by OPEC and non-OPEC producers with the deal is seen at above 200% in September, sources familiar with the matter said on Monday.

The Saudi minister called for a focus on stability of the oil market, rather than prices.

OPEC members and allies, a grouping known as OPEC+, meet next in December to decide on output policy for 2020.

“We hope that Nigeria, Gabon, South Sudan and Iraq will be fully compliant with OPEC+ deal in October,” Prince Abdulaziz told reporters, referring to countries that have missed targets.

Speaking at the same event, Russian Energy Minister Alexander Novak said there were no talks underway to change the global output deal.

Moscow is fully committed to the deal, he added.

The deal between OPEC, Russia and other non-OPEC producers aims to reduce output by 1.2 million bpd until March 2020 amid forecasts of excess supply next year.

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Last Update: Wednesday, 20 May 2020 KSA 14:05 - GMT 11:05
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