OPEC Crude Output Climbs To 27m BPD as Libya Restores Oil Production

Crude production by the Organisation of Petroleum Exporting Countries (OPEC) increased for a second month in November as Libya continued to recover from a political feud that had shuttered its biggest oil field.

OPEC pumped an average of 27.02 million barrels a day last month, up by 120,000 from the previous month, according to a Bloomberg survey. Libya, restoring output disrupted during a clash between rival governments, accounted for most of the addition.

Libya’s vagaries are separate from the core supply agreement between OPEC and its partners, which will meet this week to consider plans to revive production that has been halted since 2022. Output changes in two other key members last month illustrate the dynamics at play ahead of those talks.

Iraq cut production for a third month as it continued efforts to belatedly implement supply cutbacks agreed at the start of the year, bowing to pressure from OPEC’s leadership. Its daily output fell by 70,000 barrels to 4.06 million, still slightly exceeding its quota.

The United Arab Emirates, which has secured a unique dispensation to gradually pump more next year, raised daily production by 90,000 barrels to 3.26 million — considerably above its current designated limit.

Libyan production increased by 110,000 barrels to 1.14 million per day, the highest since July, after restarting its Sharara oil field in October. It had been halted in August as authorities in the east of the country clashed with the Tripoli-based government over control of the central bank.

Before this week’s meeting, several OPEC+ delegates have privately said that the coalition, led by Saudi Arabia and Russia, is discussing delaying its scheduled output restart as crude prices struggle amid signs of an impending glut. Oil futures are trading near $72 a barrel in London, down 18 per cent since early July.

The group currently plans to begin a series of monthly hikes, with an initial increment of 180,000 barrels a day in January. But the move has been delayed twice already and will probably be postponed for another few months, the delegates said.

The UAE has been accorded the right to slowly ramp up an additional 300,000 barrels a day of production over the course of 2025, in recognition of recent investments in its capacity.

Emirati officials say this increase is ring-fenced from any negotiations later this week about whether to proceed with the January supply hike, though one delegate from another member country said it may be up for debate.

The OPEC+ online meeting on December 5 was delayed from Sunday, officially to allow some ministers to attend a meeting of the Gulf Cooperation Council in Kuwait that day. However, delegates have said that the coalition has needed extensive talks to work toward an agreement.

There has been a flurry of shuttle diplomacy, with Saudi Arabian Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak traveling last week to Iraq and Kazakhstan. Baghdad, Moscow and Astana have all dragged their heels in delivering supply curbs.

On Sunday, Saudi Crown Prince Mohammed bin Salman met with United Arab Emirates President Sheikh Mohammed bin Zayed in the city of Al Ain, according to UAE state news agency WAM. They discussed bilateral ties as well as regional and international developments.

Bloomberg’s survey is based on ship-tracking data, information from officials and estimates from consultants, including FGE, Kpler Ltd., Rapidan Energy Group and Rystad Energy.

Emmanuel Addeh

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