Despite earlier plans to cut crude oil production by 3.5% starting this month, the 11 member nations of the Organization of Petroleum Exporting Countries (OPEC) produced a total of 27.51 million barrels a day (b/d) of oil in October, an increase of 230,000 b/d from September levels, according to a survey by the London-based newsletter Platts.
The publication said the increase is largely because oil output from Iraq continues. Iraqi production rose 270,000 b/d between September and October, topping 1.7-million b/d.
Excluding Iraq, the 10 other OPEC members with quotas under an overall ceiling of 25.4-million b/d produced an average 25.81-mil b/d over the month, a 40,000 b/d dip from September's 25.81-mil b/d, the survey showed. Platts said those countries would have to cut output by more than 1.3-million b/d in November in order to meet the new ceiling – though that may be difficult.
“Given current high prices, there was little incentive for producers to rein in output,” said John Kingston, Platts’ global director of oil.