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Opec November oil output slips ahead of meeting, Aramco IPO

Reuters/London
Filed on November 29, 2019 | Last updated on November 29, 2019 at 08.32 pm
Opec is expected to extend their supply pact at meetings on December 5-6.

(AFP)

14-member group pumps 29.57M bpd in November, down 110,000bpd from October

Opec oil output has fallen in November as Angolan production has slipped due to maintenance and Saudi Arabia has kept a lid on supply to support the market before the initial public offering of state-owned Saudi Aramco, a Reuters survey found.

On average, the 14-member Organization of the Petroleum Exporting Countries has pumped 29.57 million bpd this month, according to the survey. That is down 110,000 bpd from October's revised figure.

The survey suggests Saudi Arabia, after resuming normal supply after attacks on facilities in September, is still pumping far less than an Opec-led supply deal allows. Opec meets to review the pact on December 5, the same day Aramco is due to announce the final offer price.

Opec, Russia and other allies, known as Opec+, agreed to reduce supply by 1.2 million bpd from January 1. Opec's share of the cut is about 800,000 bpd, to be delivered by 11 members, with exemptions for Iran, Libya and Venezuela.

The producers are expected to extend their supply pact at meetings on December 5-6. Opec delegates have said the producers could discuss deeper supply cuts amid forecasts of excess supply in 2020.

"The minimum is to extend," said an Opec delegate.

Oil has slipped to $63 a barrel after spiking to $72 following the September 14 attacks on Saudi oil plants. The current price is below the levels many Opec countries need to balance their budgets and below the levels officials say they favour.

Crude prices slipped on Friday. Brent crude futures were down $1.14, or 1.78 per cent, at $62.73 a barrel by 1502GMT. West Texas Intermediate (WTI) futures were down $1.62 or 2.79 per cent at $56.49.

Opec's largest production drop of 140,000 bpd was in Angola, which exported less crude in November due to maintenance affecting the Girassol crude stream, traders said. Saudi Arabia has pumped 9.85 million bpd, down 50,000 bpd from October.

'Too early to talk'

Meanwhile, Russian Energy Minister Alexander Novak said on Friday he would prefer if Opec and its non-Opec allies took a decision closer to April on whether to extend their oil output deal, the TASS news agency reported.

The comments are likely to be opposed by most of Opec's members, which are aiming to clinch a new output deal at the meeting.

"It's too early to talk, we have the agreement until April 1. Today it is still November. Why should we be asking questions in November about the month of April?" Novak was quoted as saying.


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