OPEC oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and U.S. sanctions on Iran and Venezuela, a Reuters survey found, APA reports citing Reuters.
The 14-member Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.9 million barrels per day (bpd) this month, the survey showed, down 750,000 bpd from August’s revised figure and the lowest monthly total since 2011.
The Sept. 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20% to $72 a barrel on Sept. 16. The price has since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
“Traders are clearly not particularly concerned about risk premiums in oil,” said Craig Erlam, analyst at online broker OANDA. “The focus again seems to be shifting back to the demand dynamics and the risk of further downgrades.”
OPEC, Russia and other oil producer allies, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from the start of this year. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members, with exemptions for Iran, Libya and Venezuela.
The 11 OPEC members bound by the agreement, which now runs until March 2020, have easily exceeded the pledged cuts. Compliance has been at 218% in September, up from 131% in August, the survey found.
Two of the three exempt producers also pumped less oil than they did the previous month.
The biggest drop was in Saudi Arabia, which supplied 9.05 million bpd, or 700,0000 bpd less than in August.
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