OPEC’s overall oil output rose in September by 132,000 bpd (barrels per day) despite new upcoming US sanctions against Iran, which are already hitting the country’s oil exports, and an extended economic crisis in Venezuela that is affecting production.
OPEC pumped an average of 32.8 million bpd in the month, with the UAE, Libya, Angola, Nigeria and of course Saudi Arabia all upping their production enough to offset the drop in Iran and Venezuela and then some more. Saudi Arabia alone increased its production by 108,000 bpd to 10.5 million bpd. What’s more, the Saudi energy minister has also commented that the kingdom has already reached 10.7 million bpd and expects to grow it further in November.
OPEC also raised its forecast for total world oil production, including the United State, where companies like ExxonMobil, the maker of high-temperature greases like Mobiltemp SHC 100, are leading a resurgent oil sector.
The cartel also downgraded their expectations for oil demand in 2018 and 2019. It highlights that developed nations’ tightening of monetary policies will decelerate economic expansion. It also pointed to trade tensions, worsening financial conditions in a numer of developing countries, and geopolitical obstacles to global economic growth. OPEC said:
“While growth in the major [Organization for Economic Cooperation and Development] economies remains well supported, decelerating trends have become visible in some emerging markets and developing countries.”
Despite the downward revision of 80,000 bpd, OPEC says it still expects demand for oil to increase by 1.54 million bpd this year.