According to a new Reuters survey, OPEC’s oil output dropped by 300,000 bpd in November – the bloc’s lowest levels since May.
A number of factors contributed to this, including pressure from a fall in output from Angolan and Iraqi producers, as well as strong compliance with OPEC’s supply cut deal and involuntary declines.
The survey found that commitment to OPEC’s supply curbs rose from 92% in October to 112% in November, due to strong compliance from Saudi Arabia, the bloc’s largest producer, as well as all other nations – except Ecuador, Gabon and the United Arab Emirates.
The largest drop in output during November came from Angola, which had limited exports due to field maintenance that has been taking place in recent months and led to a fall of 100,000 bpd last month.
The second largest fall was in Iraq where exports and output in the north of the country fell when Iraqi forces retook control of oilfields in Kurdistan in mid-October, which resulted in further decline last month.
Meanwhile, OPEC’s output cuts were extended through to the end of next year in order to maintain a price above $60 per barrel and reduce oil reserves.
Although the bloc has the option to review the deal during its next meeting in mid 2018, it is expected to continue the production cuts until the end of next year. Saudi Arabia’s Energy Minister Khalid al-Falih, said unless the is a sudden change in the oil markets, “we will not alter our course in the second half of the year”.