OPEC production falls in November as Saudi, UAE output declines

Crude oil production from the Organization of Petroleum Exporting Countries (OPEC) decreased by 133,000 barrels per day (bpd) in November to average 32.45 million bpd, as output declined in Saudi Arabia, United Arab Emirates and Angola, the group said in its latest monthly report.

The report, citing secondary sources, said oil production in Saudi Arabia dropped from 10.041 million bpd in October to 9.996 million bpd in November.

Based on direct communication, the Kingdom’s production stood at 9.891 million bpd in November, down 164,000 bpd from the previous month.

The UAE’s production fell 35,000 bpd in November to 2.883 million bpd, according to secondary sources.

Last month, OPEC and a group of non-member oil producers, led by Russia, agreed to extend until the end of 2018 their agreement to cut oil production by a combined 1.8 million bpd. The agreement requires Saudi Arabia to maintain its production below 10.058 million bpd.

Meanwhile, OPEC maintained its world oil demand forecast for 2018 at 1.51 million bpd.

The group revised the non-OPEC oil supply growth for this year to 810,000 bpd, an increase of 15,000 bpd from November. For 2018, the forecast for non-OPEC supply growth was revised up by 120,000 bpd to 990,000 bpd, but the group warned that the supply forecast was associated with considerable uncertainties, particularly regarding US tight oil developments.

According to the report, the US oil supply is expected to grow by 1.05 million bpd next year, registering an increase of 180,000 bpd after recording rise of 610,000 bpd in 2017.

Elsewhere, OPEC Secretary General Mohammad Sanusi Barkindo said on Tuesday that global energy demand growth is expected to increase by approximately 96 million barrels of oil equivalent per day between 2016 and 2040.