The Organization of the Petroleum Exporting Countries (OPEC) has seen output rise for the third consecutive month after the resumption of Libyan oil production and higher Iranian export levels, according to Reuters.
According to a Reuters survey, OPEC pumped 24.38 million barrels of oil per day (mmbbl/d) on average in September, up 160,000 bbl/d from August’s revised figure.
The reason for this sudden increase is due to Libya and Iran, two of the OPEC members exempt from a supply pact, who are pumping oil into an already saturated market.
This influx, coupled with fears of a second wave of coronavirus, has had the knock-on effect of reducing oil prices 10% in September to near $40 a barrel.
The survey found Libyan output increased on average by 70,000 bbl/d in September, whereas Iranian supply rose by 120,000 bbl/d as exports have increased in September in defiance of U.S. sanctions.