OPEC Reports Decline in Iran's November Output

EghtesadOnline: Iran produced 3.81 million barrels of crude oil per day in November, down 2,200 barrels compared with the previous month, OPEC's calculations showed on Wednesday.

News ID: ۷۸۱۳۲۸

15 January 2018

That is the second consecutive monthly decline in Iran's crude output, according to data provided by OPEC's secondary sources.

The figures show the No. 3 producer of the Organization of Petroleum Exporting Countries is sticking to its supply limits under a deal between OPEC and some non-OPEC producers aimed at restoring balance to markets.

Iran is expected to pump around 3.8 million bpd under the oil output cut deal that will expire at the end of 2018, Financial Tribune reported.

The country's own figures showed an increase of 68,000 barrels in production to 3,878 million bpd last month.

OPEC uses two sets of figures to monitor its output: figures provided by each country and secondary sources that include industry media.

Output of the group of 14 producers fell 133,000 bpd. The biggest cuts came from Angola (108,000 bpd), Saudi Arabia (45,000 bpd), Venezuela (41,000 bpd) and the UAE (35,000 bpd), while Nigeria boosted output the most by 95,000 barrels a day.

The report also showed the price of Iran Heavy, one of the country's main oil grades for export, jumped $4.98 per barrel, or 9.2%, in November.

The price of OPEC basket of 14 crudes, or ORB, rose $5.24, or 9.4%, to settle at $60.74 per barrel on a monthly average in November. Compared to the previous year, the ORB value was 29.7%, or $11.82 higher, at $51.62 per barrel.

OPEC cut its estimate of global demand for its crude in 2018 by 270,000 barrels per day to 33.15 million bpd, in part because of higher US supply, Reuters reported.

Oil prices are trading near $64 a barrel, close to their highest since 2015, supported by the OPEC-led effort and an unplanned shutdown of a British oil pipeline. The price of crude is still about half its level of mid-2014.

OPEC said oil stocks fell further in October. Its production figures showed compliance with the supply cuts increased in November from already high rates. Adherence by the 11 OPEC members with output targets has risen to 121%, according to a Reuters calculation, higher than October’s level.

OPEC's secretary-general said on Wednesday that OPEC is near its goal of rebalancing the oil market as an inventory overhang targeted by its output curbs continues to shrink.

"We are beginning to see a return to stable markets, something that has eluded us for several years," Mohammad Barkindo also said in a Bloomberg Television interview in Beijing.

It comes as OPEC and its partners are working on a continuity strategy for adjusting supply beyond their existing deal, he added.