OPEC output rises in October as Saudi, UAE pump more oil

OPEC's total crude oil production rose by 127,000 barrels per day (bdp) to average 32.90 million barrels per day (mbd) in October, as Saudi Arabia and the UAE hiked production, the 15-nation oil producer group said in its latest report.

Saudi Arabia raised its output by 127,000 bpd to 10.630 mbd in October, according to secondary sources. The direct communication figures showed the Kingdom increased production by 141,000 bpd to 10.642 mbd last month.

On the other hand, the UAE added 142,000 bpd to reach 3.16 mbd, the report said, quoting secondary sources.

Earlier this week, Saudi Energy Minister Khalid Al-Falih said that a global oil output cut of one mbd is needed to maintain market balance and the Kingdom will reduce production by 500,000 bpd in December.

Meanwhile, OPEC revised 2019 world oil demand growth forecast for 2019 by 70,000 bpd to 1.29 mbd year-on-year (YoY) from its last month’s projection

However, oil demand growth is anticipated to increase by 1.50 mbd YoY this year, a downward revision from the previous month of 40,000 bpd, mainly due to weaker-than-expected oil demand data from the Middle East and China in Q3 2018. The expected total oil demand for 2018 is anticipated at 98.79 mbd.

"The OECD region will contribute positively to oil demand growth, increasing by 25,000 bpd YoY, while the non-OECD region is expected to see larger growth by 1.04 mbd next year," the report said.

OPEC and participating non-OPEC countries in the Declaration of Cooperation (DoC) are slated to meet in early December to assess market developments and discuss their future cooperation plans.

"The DoC partners remain unwaveringly focused on supporting oil market stability for the benefit consumers, producers, and the industry, as well as the world economy, at large," OPEC added.