Crude oil market participants consider the increase in production as a risk factor for prices. As at 19.08 GMT the cost of the November futures for light WTI oil fell to 3.02 per cent, to 48,13 per barrel.
MOSCOW, 12 Oct. Oil prices on Monday are demonstrating negative dynamics, including crude oil become cheaper by more than 3% amid reports of OPEC production, according to AFP.
As at 19.08 GMT the cost of the November futures for North sea Brent blend fell by 2.71% to 51.48 per barrel, WTI light crude oil — on 3,02%, to 48,13 per barrel.
According to the October report, OPEC in September, the organization has continued to increase oil production — 0.11 million barrels per day, up to 31,57 million barrels. Data excluding Iraq, OPEC production last month amounted to $ 27,429 million barrels per day (an increase of 29 thousand barrels). Thus, in September, OPEC has again exceeded its own stated quota for extraction to 30 million barrels per day.
The total volume of global oil production in September fell by 0.34 million barrels per day — up to 94,16 million barrels per day. Production growth in September was mainly observed in Iraq, Nigeria and the UAE. While production in Saudi Arabia showed the strongest decrease of 48 thousand barrels per day. The share of OPEC in global production in September amounted to 33.5% versus 33.3% in the previous month.
“These monthly reports continue to show that current OPEC production is much higher than the target organisation for the oil, implying a constant surplus and growth in reserves. We see future growth in reserves in the coming 12 months as a permanent risk to prices,” reported the newspaper The Wall Street Journal analyst Long Leaf Trading Group, Tim Evans (Tim Evans).