Business | Oil & Gas
Opec supply declines in October
Oil supply from the Organisation of Petroleum Exporting Countries (Opec) fell in October for a second consecutive month as Saudi Arabia and Iran trimmed production and maintenance curbed supply in the UAE, a Reuters survey showed on Monday.
- Reuters
- Published: 00:24 November 4, 2008
London: Oil supply from the Organisation of Petroleum Exporting Countries (Opec) fell in October for a second consecutive month as Saudi Arabia and Iran trimmed production and maintenance curbed supply in the UAE, a Reuters survey showed on Monday.
The survey of oil firms, Opec officials and analysts found that the group, excluding Iraq, is trimming output back to official target levels, in line with a September 10 deal to prop up prices.
Supply from Opec fell to 32.23 million barrels per day (bpd) in October from 32.34 million bpd in September, according to the survey. Output is set to fall further later in the year as Opec implements an October 24 agreement to curb output further.
Impact
"Due to logistical constraints like shipping and production at the wellhead, the visible impact of cuts will not become apparent until December or early January," said Harry Tchilinguirian, senior oil analyst at BNP Paribas.
The UAE will reduce oil output by 150,000 to 200,000 bpd for 40 days in October and November for maintenance, according to officials at the Abu Dhabi National Oil Company.
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