OPEC Production Increases 50k b/d in September

OPEC Production Increases 50k b/d in September

OPEC crude production has risen in September, Reuters reports.

Production has edged higher by 50,000 barrels a day (b/d), largely due to increases in Iraq and Libya, according to Reuters.

Iraq has claimed to be fully in compliance with the production-cut agreement, but it has little control over the oil exported from its autonomous northern region, the Kurdistan Regional Government (KRG). According to its oil minister, Iraq, excluding the KRG, produced 4.32 million b/d in August, below the 4.35 million b/d it is permitted to produce under the agreement.

The higher Iraqi production figures in September are driven by higher production in KRG territory, Reuters reports. The KRG has increased production by 40,000 b/d.

Libya’s oil production took a hit in August as armed groups closed pipelines, stopping production at some of its most important fields. Conditions, however, have improved in September, allowing production to rise again.

In January, OPEC and a number of other important oil producers implemented an agreement to cut production by 1.8 million b/d in an attempt to draw down global crude supplies and bolster prices.

As an organization, OPEC’s compliance with the agreement dropped to 86% in September from 89% in August, Reuters reports.

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