OPEC increase output to highest since 2016

OPEC increase output to highest since 2016

OPEC has increased its oil production in November to the highest level since 2016, according to a Reuters survey which found that higher output lead by the UAE and Libya more than compensated for reduced Iranian exports.

Collectively the 15-member bloc produced 33.31 million barrels per day in October, up 390,000 bpd on the previous month and the highest level from OPEC since December 2016.

In June, OPEC agreed to increase production to counterbalance an expected shortfall from US sanctions on Iran following increased pressure from US President Donald Trump on the bloc.

Russia and other non-OPEC countries were also involved in the June agreement, which saw participants reduce commitment to a production cut deal back to 100%, after several months of underproduction from countries, including Venezuela and Angola, had pushed production cuts to above 160%.

In October, OPEC got the closest it had to a 100% compliance to the supply limiting agreement at 107% after production rose.

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