OPEC’s oil output reaches record level: IEA

According to media reports, the International Energy Agency reported that the Organization of the Petroleum Exporting Countries’ (OPEC) oil output rose to its highest level of all time last month as OPEC members increased output levels in order to gain market share. Officials from three of the cartel’s members stated that they even plan to increase output in the short term.

Last month, OPEC had reached an agreement to reduce oil output to a maximum of 33 million barrels a day. OPEC’s actual output in September reached a record 33.64 million barrels a day. However, Libya, Iran and Nigeria were excluded from this deal, due to their recovering from long disruptions. These three nations increased total production by 120,000 barrels a day from August levels, according to IEA. Officials from those countries report plans to increase production by around another 580,000 barrels a day, which is equal to the amount OPEC agreed to cut.

IEA stated in its monthly report that the market will face an oversupply issue in the first half of next year if real steps are not taken to cut production.

“Further increases from those countries would suggest that bigger cuts would have to be made by others, such as Saudi Arabia. Our supply-demand outlook suggests that the market may remain in oversupply through the first half of next year,” the IEA said.

OPEC’s Secretary General Mohammad Barkindo said this week that OPEC officials will be meeting later this month to discuss implementing the agreed oil cuts and that they would meet with non-OPEC members including Russia.

Meanwhile, oil prices rose to their highest level in several months after Russian President Vladimir Putin said Monday that Russia was willing to join in the oil production cuts.