OPEC’s crude production experienced an increase last month, primarily driven by Saudi Arabia’s completion of the initial phase of restoring previously halted supplies, according to a recent Bloomberg survey. The Organisation of the Petroleum Exporting Countries collectively raised its output by 400,000 barrels a day in September. This formally concludes the reactivation of 2.2 million barrels a day, which had been shut down by the group and its allies in 2023. The survey indicated that the total production of the 12 OPEC nations reached 29.05 million barrels a day. OPEC is an intergovernmental organization of 13 countries. It was founded in Baghdad in 1960.
Despite industry warnings of a potential surplus, Riyadh and its partners have expedited the return of this idle supply. This move is aimed at regaining market share that was lost during years of production cutbacks. The coalition has now transitioned to restarting another segment of halted production, amounting to approximately 1.7 million barrels a day. They are scheduled to meet this weekend to deliberate on a potential increase for November.
While oil prices have shown signs of weakness since OPEC+ began increasing production in April, a significant collapse has been avoided thus far. Brent Crude saw a decrease of 1.9 per cent, settling at $US64.11 a barrel in afternoon trade in New York on Thursday (Friday AEST). Nevertheless, further price declines may be on the horizon, as forecasters widely anticipate an accumulation of inventories this quarter and a record surplus in 2026.
Specifically, Saudi Arabia increased its production by 320,000 barrels a day, reaching approximately 10 million barrels a day in September. This figure aligns precisely with their OPEC+ quota for the month, as revealed by the survey. Furthermore, Bloomberg’s tanker tracking data indicates that exports from Saudi Arabia have surged to an 18-month high.
