Saudi Arabia drives rise in OPEC’s September crude output
The Organization of the Petroleum Exporting Countries (OPEC) hiked crude oil production by 132,000 barrels per day (bpd) month-on-month to average 32.76 million barrels per day (mbd) in September, the oil cartel said in its latest monthly report, citing secondary sources.
Crude oil output increased mostly in Saudi Arabia, Libya and Angola, but declined in Iran, Venezuela and Algeria. The US will reimpose sanctions on Iran's crude oil exports from Nov.4.
Saudi Arabia lifted its output by 108,000 bpd in September to 10.512 mbd, according to secondary sources. The direct communication figures showed a 90,000 bpd jump to 10.502 mbd last month in Saudi oil production.
On the other hand, the UAE added 30,000 bpd in September to reach 3.004 mbd, secondary sources data showed.
Meanwhile, OPEC lowered its world oil demand growth for 2018 by 80,000 bpd to 1.54 mbd, from the last month’s assessment, based on the recent OECD Europe and the Middle East data, and the latest developments in the economies of Latin America. It estimated the total oil demand at 98.79 mbd.
However, Asian nations, led by India, followed by China, and OECD America will drive the oil demand growth. In 2019, OECD demand is forecast to grow by 250,000 bpd, while non-OECD countries will drive oil demand growth by adding an estimated 1.11 mbp.
According to the report, the demand for OPEC crude will increase to around 40 mbd in 2040, up from 32 mbd in 2018, while the share of OPEC crude in the global oil supply is expected to rise from 34 percent in 2018 to 36 percent in 2040.
Global oil demand is expected to increase by 14.5 mbd to 111.7 mbd in 2040, higher than the last year’s “World Oil Outlook,” driven by growth in non-OECD regions, the report noted.
On Wednesday, the US Energy Information Administration (EIA) forecast Brent to average $74.43 per barrel (bbl) in 2018, up $1.59 from last month's forecast, and WTI at $69.56/bbl, up $2.53 from last month's estimate.