The latest Platts' monthly survey of OPEC production, for November, doesn't show a lot more oil in the market at first glance. But that's not the whole story.
Total production from the group was 31.15 million b/d, only 40,000 b/d more than October. But that's because the UAE was conducting extensive maintenance, and its 2.6 million b/d figure from October fell to just 2.15 million b/d in November. That maintenance is largely complete.
The Abu Dhabi National Oil Company had signalled November maintenance on its Upper Zakum, Lower Zakum and Umm Shaif offshore oilfields well in advance, saying in September that it had worked with its customers to ensure minimum disruption by advancing the majority of liftings. As a result, total UAE output fell to 2.15 million b/d in November, down from an average of 2.6 million b/d in October.
More significant was the fact that OPEC kingpin Saudi Arabia pumped an average 9 million b/d over the month, pushing out an additional 200,000 b/d, while Iraq's output rose 120,000 b/d to 2.4 million b/d, the highest since the 2003 war. The increases out of Iraq have been consistent, and come as reports continue to build of more stability in the country. That stability has allowed for a significant increase, and steady export, of Kirkuk crude, shipped from the Mediterranean port of Ceyhan.
Most members increased production, Iran and Kuwait boosting output by around 50,000 b/d each and Angola by 30,000 b/d, with smaller increases of around 10,000 b/d coming from Algeria, Libya, Nigeria and Qatar. New member Angola produced 1.78 million b/d, which was more than the prior month.
For consumers, it's definitely a bit of good news.
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