OPEC’s oil sup­plies hit 31.68m bpd in Septem­ber

Kuwait Times - - LOCAL -

KUWAIT: OPEC’s daily oil sup­plies went up from 31.57 mil­lion bar­rels per day in last Au­gust to 31.68 mil­lion b/d in fol­low­ing month, said the Diplo­matic Cen­ter for Strate­gic Stud­ies in its eco­nomic re­port on Sun­day. The global oil car­tel en­hanced its out­put by 1.5 mil­lion b/d since last Novem­ber to en­sure that the mar­ket is well sup­plied, the re­port, noted.

This re­flects a turn in OPEC’s pol­icy which used to cut down its out­put in or­der to boost prices, thus bring­ing down the prices by al­most a half to $48 pb over the last year. How­ever, the con­tin­ued de­cline of the out­put of the US oil rigs could help boost the prices even slightly, the re­port said, cit­ing re­cent re­ports that the num­ber of op­er­at­ing oil rigs in the US went down from 1,609 in Oc­to­ber, 2014, to just 614 in last month.

Rus­sia, the world’s largest oil pro­ducer, has stated de­sire to dis­cuss the oil prices with OPEC, which could con­trib­ute to the up­ward slant of the prices in the short run. In Novem­ber, 2014, Rus­sia re­fused to co­op­er­ate with OPEC and cut its out­put quota in or­der to boost the prices. In Septem­ber, 2015, Rus­sia’s daily out­put has hit 10.74 mil­lion bar­rels - a record high since the dis­so­lu­tion of the Soviet Union, de­spite the fact that the prices hit a low record in six and a half years.

Though the num­ber of op­er­at­ing US oil rigs de­clined, the coun­try’s pro­duc­tion grew from 9.3 mil­lion bpd in June, 2015, to 9.4 mil­lion bpd in the fol­low­ing month, ac­cord­ing to fig­ures for the En­ergy In­for­ma­tion Ad­min­is­tra­tion (EIA).

Nev­er­the­less, this level of US oil out­put is less than the 9.6 mil­lion bpd, reg­is­tered in April, 2015 - an all-time record high since early 1970s. As the US out­put con­tin­ues to in­crease, the OPEC mem­ber states are vy­ing for larger shares from the East Asian mar­kets.

Saudi Ara­bia re­duced the prices of its oil ex­ports af­ter sim­i­lar steps an­nounced in last Septem­ber by other OPEC mem­bers from the Gulf re­gion, ac­cord­ing to the re­port. Iran and Iraq and other Mid­dle East coun­tries cut down their of­fi­cial oil prices by mar­gins larger that Saudi Ara­bia’s, it added.

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.