Share

Opec output rises to record ahead of talks with Russia

London - Crude production of the members of the Organisation of Petroleum Exporting Countries (Opec) climbed to a record last month as increased output from Gulf members made up for persisting losses in Nigeria and Libya, according to a Bloomberg survey.

Supplies from the Opec rose by 120 000 barrels a day to average 33.69 million a day in August amid increases by Iran, Iraq and Kuwait, the survey of analysts, oil companies and ship-tracking data showed.

The group is due to hold informal talks in three weeks in Algiers, where Russian President Vladimir Putin says an agreement can be reached to limit output.

Iraq led the increases, boosting supplies by 70 000 barrels a day to 4.48 million a day, after the government resumed flows from Kirkuk through a northern export pipeline controlled by the nation’s Kurds, signalling progress in a long-standing dispute over payments.

Iran raised production by 60 000 barrels a day to 3.62 million as it continues its return to global markets after the end of international sanctions in January.

Saudi Arabia, the group’s biggest and most powerful member, raised output by 30 000 barrels a day to an all-time high of 10.69 million a day.

The kingdom increased production to meet both domestic consumption - which peaks in the summer with surging air conditioning use - and demand from customers overseas, Energy Minister Khalid Al-Falih said in an interview with the Saudi Press Agency last month.

OPEC nations will meet Russian Energy Minister Alexander Novak for informal talks on the side lines of an industry conference in Algiers scheduled for September 26 to September 28.

Putin would like Russia and Opec to reach a deal on freezing supply, he said in an interview on Thursday. Any dispute over Iran’s participation which thwarted a previous effort can be resolved, he said.

Still, with Opec members already producing at, or close to, their maximum capacity, any accord they reach on a freeze will have little relevance for actual supplies, according to Mike Coleman, founder of Singapore-based hedge fund, RCMA Asset Management.

"It’s more symbolic," Coleman said. "The production freeze doesn’t do anything. To have a meaningful impact on prices, you need a production cut."

Nigeria suffered the biggest production decline among Opec’s 14 members last month, sliding by 130 000 barrels a day to 1.44 million a day. Companies are struggling to repair pipelines in the oil-rich Niger Delta following attacks claimed by militant groups.

Libya experienced the next-biggest losses, sliding 40 000 barrels a day to 260 000 a day as the country’s political factions continued to feud over the control of oil export terminals.

Output restarted at the Sarir oil field, Arabian Gulf Oil Company said on Thursday, following the receipt of payment from the state-run oil company.

Last month’s production figure exceeds last year’s level even when adjusted to exclude Gabon and Indonesia, which joined the group this year. Estimates for most members’ production in July were revised from the previous survey.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.82
+0.3%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders