BAKU, Azerbaijan, October 12. Crude oil production under the OPEC+ deal fell by 500,000 barrels per day to 40.23 million bpd in September, mainly due to a major production shutdown in Libya and a decline in Iraqi exports, Trend reports via S&P Global Commodity Insights' "Platts OPEC+" survey.
Meanwhile, crude oil production by 13 OPEC members fell by 520,000 barrels per day to 26.25 million barrels per day in September, while production by the 10 OPEC+ allies as a whole rose by 20,000 barrels per day to 13.98 million bpd.
“Among the non-OPEC alliance countries, Kazakhstan increased production by 70,000 bpd to 1.52 million bpd after its large Tengiz field underwent maintenance in early September. Russia in September reduced production by 50,000 bpd to 9.0 million bpd,” noted in the material S & P Global Commodity Insights.
The survey notes that OPEC+ overproduction contributed to a steady decline in oil prices in mid-2024 when, in early September, the price of benchmark Brent fell below $70 / bar (this led to the fact that OPEC+ postponed for two months plans to begin a gradual reduction of voluntary reductions in voluntary cuts in oil production by the countries of the deal by 2.2 million b/s).
To note, OPEC+ planned to gradually ease voluntary production cuts by eight members—Saudi Arabia, Kuwait, Algeria, Oman, Kazakhstan, Iraq, Russia, and the UAE—depending on market conditions, starting with 190,000 b/d in October.
“Weak demand in China, the world's largest importer of crude oil, as well as high oil production in non-OPEC+ countries, especially the US, and high interest rates around the world also contributed to the decline in global oil prices in September,” S&P Global Commodity Insights noted.
Nevertheless, in the last weeks of September, due to concerns about the security of supply (aggravation of the situation in the Middle East), prices began to rise, and, according to Platts, on October 9, the price per barrel of benchmark Brent amounted to $77.665/bbl.
S&P Global Commodity Insights is a go-to source for energy and commodities information, serving up benchmark price assessments in the bustling world of physical commodity markets. The business got its wheels turning in 1909 when Warren C. Platt laid the groundwork with the launch of the magazine National Petroleum News. S&P Global Commodity Insights is hailed as a heavyweight in the ring of price reporting agencies for the oil market.