OPEC crude oil output are at unprecedented levels as Middle East producers ramp up supply to 33.47mn bpd
The International Energy Agency (IEA) released its annual Oil Market Report on 13 September 2016. Despite some mixed results for oil producers and subsidiary companies, OPEC countries have a lot to celebrate.
According to the IEA report, OPEC crude production edged up to 33.47mn bpd in August, testing record rates as Middle East produces opened up the taps. Kuwait and the UAE hit their highest ever output and Iraq reached a post-sanction high. Saudi Arabia was near to record production as the OPEC supply stood 930,000 bpd above this time last year.
Saudi Arabia overtook the USA as the low-cost oil fields cranked out an extra 400,000 bpd whilst the USA has been estimated to shut in 460,000 bpd of high-cost production.
Saudi Arabia’s energy minister Khalid al-Falih said, “The Kingdom is pumping harder to cover rising seasonal domestic demand and to meet increased export requirements.”
However, OPEC production was an impressive 1.1mn bpd higher than a year earlier, it only just offset the steep declines from non-OPEC countries. These declines predominately came from the USA, as it accounted for roughly half of the annual loss, whilst other declines came from Russia, Kazakhstan, China, Columbia, Mexico, Australia and the North Sea.
OPEC ministers will now meet on the sidelines of the Internation Energy Forum in Algeria from 26-28 September, which may set the stage for OPEC’s ministerial gathering in November.