OPEC Raises Oil Production To Highest Level In Years

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OPEC raised its September crude oil production to the highest level since 2020, a Reuters survey found on Friday—yet failed to meet its September quota.

OPEC’s production for September came in below its specified quota for the month, although the month on month increase in production was higher than the promised 64,000 bpd hike.

The survey found that OPEC’s September production reached 29.81 million bpd—a 210,000 bpd increase over August. For its 10 participating members in the OPEC cut, September’s production was 130,000 bpd over August levels, but still shy of their full production targets.

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As widely expected, Saudi Arabia managed to raise its production by 50,000 bpd for September, reaching its 11 million bpd target. The UAE and Kuwait also hit their targets.

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Earlier this week, Russia was reportedly recommending to the group a production cut of 1 million bpd.

Signs point to OPEC+ being willing to defend somewhere near $90 oil. Currently, the Brent benchmark is trading at $88.30 per barrel—trading down despite the heightened geopolitical situation with Russia and Ukraine, the tight market, and increased tensions over the Nordstream 1& 2 gas pipeline explosions.

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Just for some point of reference, with Saudi Arabia’s production being increased to 11 Million barrels of crude per day for the month of September, this past week’s report for the U.S. showed our domestic crude production at 12.0 MMBPD for week of September 23. That’s roughly 1.4 MMBPD higher than this time last year’s average for the week.

So our production is up from this same time in 2021; however, still short from the month of December 2019 peak, right before OPEC tensions in Feb 2020 and Covid shutdowns caused the oil market to tank with lots of production eventually shut in with “negative” oil prices.