OPEC Oil Output Rose in October on Libya, Saudi Arabia, IEA Says

OPEC crude production rose in October as Libyan output recovered quicker than expected and Saudi Arabia pumped more, the International Energy Agency said.

Daily supply from the Organization of Petroleum Exporting Countries’ 12 members increased to 30.01 million barrels a day in October from 29.91 million in September, the Paris-based agency said today in its monthly Oil Market Report. Rising production in Libya, Saudi Arabia and Angola offset declines from six other members, the IEA said.

Libya pumped 350,000 barrels a day last month, and the restart of production after the North African country’s eight- month civil conflict “is on a far faster track than initially anticipated,” the IEA said.

Saudi Arabia, the world’s largest crude exporter, produced 9.45 million barrels a day in October, compared with 9.4 million the previous month.

Production from the 11 OPEC members bound by quotas, excluding Iraq, climbed to 27.32 barrels a day in October. That implies a compliance rate of 41 percent with OPEC’s output targets last month, from 44 percent in September.

OPEC, provider of about 40 percent of the world’s crude, set its biggest-ever supply cuts in late 2008 amid a collapse in global demand. The decision capped production at 24.845 million barrels a day for all members except Iraq, which is exempt from the quota system. Members have largely exceeded quotas this year as they sought to take advantage of higher global crude prices and to make up for the lack of Libyan crude.

Compliance percentages are based on combined output from the 11 members that committed to reduce from a base production rate in September 2008 of 29.045 million barrels a day.

(Source: Bloomberg)

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