OPEC output falls as Saudi production hits lowest in September

Saudi Arabia’s crude oil production dropped by 1.28 million barrels per day (mbd) to average 8.56 mbd in September, the Organization of Petroleum Exporting Countries (OPEC) said in its latest monthly oil market report on Thursday, citing secondary sources.

The direct communication figures showed the Kingdom’s oil production declined by 660,000 barrels per day (bpd) to 9.12 mbd.

Last month, Prince Abdulaziz bin Salman bin Abdulaziz said that Saudi Arabian Oil Co. (Saudi Aramco) had restored its production capacity to normal levels after attacks on Abqaiq and Khurais facilities. The drone attacks reduced the state oil giant’s crude oil supply by around 5.7 million bpd or about 50 percent of its output.

Read: Aramco restores production capacity to normal levels: Energy minister

Following the attacks, Brent prices soared by nearly 15 percent ($8.8) in one session on September 16, due to risks of heightening tension in the Middle East.

Concerns of a slowdown in the global economy, fueled by weak macroeconomic data and an ongoing trade dispute between the US and China, dampened global demand outlook, putting downward pressure on oil prices, OPEC added.

Overall, OPEC-14 preliminary crude oil production averaged 28.49 mbd in September, losing 1.32 mbd over the previous month, driven by decline in Saudi Arabia, Venezuela, Iraq and Iran.

Meanwhile, OPEC also revised higher the global oil demand growth by 1.08 mbd to 101 mbd. It, however, revised lower world oil demand growth for 2019 by 0.04 mbd to 0.98 mbd, with total oil demand at 99.80 mbd.

In September, Brent rose 4.7 percent month-on-month (MoM) to average $62.29 a barrel, while WTI gained 3.9 percent MoM to average $56.97 per barrel. 

Write to Parag Deulgaonkar at parag.d@argaamplus.com