Libya’s ramped-up oil output throws another wrench at prices and OPEC’s plans
OPEC oil production rose for a fifth month in November, according to a Reuters poll, as increased Libyan pumping offset the full adherence of other exporters to cuts agreed to in a trade deal. supply led by the cartel.
OPEC pumped 25.31 million barrels per day (bpd) in November, according to the query, 750,000 bpd more than in October and a further increase from a three-decade low in June.
OPEC, Russia and their allies, a group known as OPEC +, have a virtual meeting on Monday and Tuesday in which they will consider whether to extend existing restrictions due to weak demand or increase output gradually from January, sources say.
“OPEC + seems incapable of reaching an agreement, at least in the run-up to today’s meeting,” said Eugen Weinberg of Commerzbank (DE: CBKG ). “That said, the oil market strongly believes that the current production cuts will continue for at least another three months.”
Libya, an OPEC member exempted from the agreement, has been recovering its production after closures of several months. Meanwhile, the cartel states are bound by the pact and continue to cut more than agreed, according to the survey, with an adhesion of 102% in November, stable since October.