LONDON. — OPEC oil output has fallen in November as Angolan production has slipped due to maintenance and Saudi Arabia has kept a lid on supply to support the market before the initial public offering (IPO) of state-owned Saudi Aramco, a Reuters survey found.
On average, the 14-member Organisation of the Petroleum Exporting Countries has pumped 29,57 million barrels per day (bpd) this month, according to the survey. That is down 110 000 bpd from October’s revised figure. The survey suggests Saudi Arabia, after resuming normal supply after attacks on facilities in September, is still pumping far less than an OPEC-led supply deal allows. OPEC meets to review the pact on December 5, the same day Aramco is due to announce the final offer price. OPEC, Russia and other allies, known as OPEC+, agreed to reduce supply by 1,2 million bpd from January 1. OPEC’s share of the cut is about 800 000 bpd, to be delivered by 11 members, with exemptions for Iran, Libya and Venezuela. The producers are expected to extend their supply pact at meetings on December 5-6. OPEC delegates have said the producers could discuss deeper supply cuts amid forecasts of excess supply in 2020.
“The minimum is to extend,” said an OPEC delegate.
Oil has slipped to $63 a barrel after spiking to $72 following the September 14 attacks on Saudi oil plants. The current price is below the levels many OPEC countries need to balance their budgets and below the levels officials say they favour. — Reuters.