OPEC October oil output surges on Saudi recovery

OPEC and its allies will meet in Vienna next month amid rising speculation about further output cuts. (File photo: Reuters)

OPEC’s oil output bounced back in October, boosted by a recovery in Saudi Arabia’s production following the attacks on its oil plants in September, the organization said in its monthly report on Thursday.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 29.65 million barrels per day (mbpd) last month, up from 28.49 mbpd in September.

The group also said it expects demand for its crude to average 29.58 mbpd next year,  1.12 mbpd less than in 2019.

Attacks on two key oil installations in Saudi Arabia knocked off five percent of the global crude supply, which has since been restored by the OPEC leader.

Oil prices are currently trading at $63 a barrel after jumping to over $70 a barrel following the attacks, and the Kingdom is widely expected to continue its efforts to support prices.

In December last year, OPEC and non-member countries announced a supply reduction of 1.2 million barrels per day from January 1 this year as a measure to support market prices, a policy which dates to 2017.

OPEC and its allies will meet in Vienna next month amid rising speculation about further output cuts.

Saudi output jumps

Saudi Arabia pumped 10.3 mbpd in October, up from 9.13 mbpd in September, the report said.

The Kingdom swiftly restored its output following the incident by tapping into its reserves and raising output from other oilfields.

In its earnings report, the country’s state-owned oil firm Saudi Aramco said it did not expect the attacks “to have a material impact on its business, financial condition or results of operation.”

Before September’s attacks, Saudi Arabia was already producing at a level lower than the one agreed under the OPEC-led supply deal.

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Last Update: Wednesday, 20 May 2020 KSA 10:01 - GMT 07:01
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