The Organization of the Petroleum Exporting Countries (OPEC) latest monthly report was issued on Wednesday.
Summary points via a Platts report, bolding is mine:
- Barring a substantial increase in OPEC crude production in the coming months, the oil market will tighten considerably … citing the lingering impacts of Hurricane Ida on US oil production, along with field maintenance and outages in Kazakhstan and Canada.
- OPEC lowered its estimate of oil supplies from outside the bloc in 2021 by 210,000 b/d from its previous forecast to 63.64 million b/d.
- Global oil demand was lowered … World oil demand is expected to increase by 5.8 million b/d to 96.60 million b/d in 2021, revised down from 5.96 million b/d growth seen last month
- As a result, the call on OPEC’s own crude production for 2021 was revised up to 27.80 million b/d, including 29.36 million b/d in the fourth quarter. That is significantly above OPEC’s output of 27.33 mil b/d in September, according to secondary sources used by the organization to track output.
- So far, however, OPEC has not indicated it plans to pump up to the fourth quarter call on its crude.
- The group will next meet on November 4 to decide on December output levels.
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