OPEC Oil Supplies Lower
Oil supplies from the Organization of Petroleum Exporting Countries (Opec) fell 400,000 barrels a day on the month to 30.2 million bpd in September, according to preliminary figures from tanker tracker Petrologistics.
Saudi Arabia and Iran led the fall in output. Petrologistics head Conrad Gerber said the kingdom produced 9.05 million bpd in September compared with 9.27 million bpd in August.
» Source: Bahrain Tribute
Saudi Oil Minister Ali Al Nuaimi said in June that Opec’s biggest producer had reined in output to 9.1 million b/d in April from 9.5 million bpd on lower demand.
“Saudi Arabia could be producing more, but some of it could be going into storage,” Gerber said.
Iran’s output, which peaked in July at 4.2 million bpd when the Islamic Republic sold oil from floating storage, is at 3.9 million bpd in September, Gerber said. Iran supplied 4.0 million bpd in August.
Gerber pegged Nigerian oil supplies at 2.35 million bpd – a 20,000 bpd increase on August. Opec’s only west African member has had some 500,000-600,000 bpd of production shut in for several months due to militant attacks in the restive Niger Delta and pipeline leaks.
Iraq, the only member without a quota, produced 2.2 million b/d in September compared with 2.1 million bpd in August as more crude was exported from northern oil fields around Kirkuk.
Opec output by the 10 members subject to a quota was at 28 million bpd.
Opec ministers have expressed concern about falling oil prices and indicated that a cut in the production ceiling could be on the horizon in the near future.
Gerber said that even at 30.2 million bpd Opec was producing more than the market needed.
“In August they were supplying 30.6 (million bpd) and that was too much and now they are at 30.2 which is okay, but still more than is needed,” he said.
US benchmark oil futures have slumped over $17/bbl since a high of $78.40/bbl in mid July. On Friday, US light sweet crude fell to a low of $60.51/bbl.
