OPEC Oil Output Rises Despite Saudi Cuts as Nigeria and Iran Lead the Way

OPEC’s oil production rose for a second consecutive month in September as revealed by a recent Reuters survey.

Despite ongoing efforts by Saudi Arabia and other OPEC+ members to curtail production, the cartel collectively pumped 27.73 million barrels per day (bpd), marking a 120,000 bpd increase from August.

Leading the charge in this production surge were Nigeria and Iran. Nigeria, grappling with crude theft and regional insecurity, managed to boost its exports by 110,000 bpd without any significant disruptions to shipments.

Iran, undeterred by U.S. sanctions, also increased its output significantly, reaching its highest levels since 2018. Signaling Iran’s determination to expand its market presence despite international constraints.

While Saudi Arabia and several Gulf members maintained compliance with production cuts, keeping their output close to 9 million bpd, other OPEC+ participants, such as Iraq and the United Arab Emirates, slightly increased their production. Conversely, Angola experienced a 50,000 bpd decline due to reduced exports.

Nevertheless, OPEC’s overall output still falls short of the targeted amount by approximately 700,000 bpd. This discrepancy can be attributed primarily to Nigeria and Angola’s capacity limitations, preventing them from reaching their agreed-upon production levels.

The Reuters survey, relying on data from various sources, continues to monitor global oil supply dynamics, shedding light on the complex interplay between OPEC’s production policies and the evolving energy landscape.

As oil markets remain in flux, these insights are crucial for industry stakeholders and policymakers alike.