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Saudi Arabia May Slash January Crude Prices for Asia Amid Weak Demand

OPEC's oil production rose in November, driven by Libya's recovery from a political crisis, while other members maintained steady output levels.

In November, the Organization of the Petroleum Exporting Countries (OPEC) saw an increase in oil production, largely attributed to Libya's recovery from a political crisis that had previously hampered its output. According to a Reuters survey, OPEC's oil production rose for the second consecutive month, reaching 26.51 million barrels per day (bpd), an increase of 180,000 bpd from October. Libya, exempt from OPEC+ production limits, contributed significantly to this rise by resolving a dispute over control of its central bank, which allowed full production to resume at its oilfields. This development has applied downward pressure on global oil prices.

The survey also noted that Nigeria and Iran each increased their output by 50,000 bpd, while Iraq slightly reduced its production to comply with its OPEC+ quota. Despite these changes, OPEC's overall production was about 16,000 bpd above the target set for the nine members under supply cut agreements, with Gabon exceeding its target by the largest margin.

A Bloomberg survey corroborated these findings, reporting that OPEC's crude production averaged 27.02 million bpd in November, up by 120,000 bpd from the previous month. Libya's output increased by 110,000 bpd to 1.14 million bpd, while the United Arab Emirates (UAE) also exceeded its production limits, pumping an additional 90,000 bpd. Iraq, on the other hand, reduced its output by 70,000 bpd but remained slightly over its quota.

OPEC+ is scheduled to meet soon, with expectations that it may extend output cuts into 2025 due to global demand concerns and rising production outside the group. This meeting is anticipated to address the balance between maintaining market stability and accommodating the production increases from member countries like Libya and the UAE.

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