OPEC oil production dropped below 30 million barrels a day

In November 2013 oil production by the members of the Organization of Petroleum Exporting Countries (OPEC) declined below 30 million barrels a day, because of strikes and protests in Libya and further reduction of oil production in Saudi Arabia, reported Reuters.

Oil production by OPEC member-states totaled 29.64 million barrels a day in November, down from 29.70 million barrels a day in October 2013.

The stoppage of oil deliveries from Libya and Nigeria affected the oil production by OPEC in 2013, which has led to growth of shale oil production in US as well as growth of oil production in the non-OPEC member states.

However, despite that cost of 1 barrel of oil at the world market remains over $100, which is acceptable for Saudi Arabia.

“There is enough supply at the market, but not too much, otherwise the prices would go down,” said Sam Tsizuk, analyst of the Swedish Energy Agency. “There are disturbances in Libya and there are positive news from Iran, but I do not think that the situation will change in the coming several months.”

The protests in Libya, problems in Nigeria and reduction of oil production in Saudi Arabia in November 2013 have reweighed partial oil production recovery in Iraq and a slight increase in Iran’s oil export. 

Since May 2011 oil production by the OPEC member-states is at a lowest level – 29.80 million barrels a day. The nominal desirable index of oil production by the OPEC member-states is 30 million barrels a day.

On December 4, 2013 the OPEC member-states will hold a summit in Vienna to discuss the possibility of increase in production up to 30 million barrels a day and considering that oil price is over $100 per barrel, the changes are not expected, the sources said.

“I do not think that the changes are expected. The price suits everybody – it is not too high and not too low,” said delegate from one of the countries of the Persian Gulf.

The sources claim that Saudi Arabia has reduced the oil production, because of a low demand in crude oil at its own power stations and with the purpose to reduce oil export.