Opec reduced output in November, more cuts planned

PARIS: Opec members curbed production in November, led by kingpin Saudi Arabia, it said Wednesday, before agreeing to deeper cuts last week.

Opec and partner countries such as Russia want to maintain crude oil prices at a minimum level despite a decline in global trade and abundant reserves.

Total output of crude by the cartel declined by 193,000 barrels per day (bpd) from October to a total of 29.55 million barrels per day (mpd) according to secondary sources cited by Opec in its monthly oil report.

Saudi Arabia accounted for most of the decline with an output cut of 151,000 bpd last month.

On Friday, Opec and its allied agreed to cut production by 500,000 bpd to stem prices.

Saudi Arabia agreed to reduce production by an additional 400,000 bpd on a “voluntary and supplemental” basis.

The kingdom nevertheless pumped 9.85 mpd in November, exceeding the level of 8.80 mpd in September, when its oil installations were hit by attacks.

Opec has struggled to maintain oil prices at a level it deems satisfactory.

On Wednesday, a barrel of North Sea Brent crude oil exchanged hands for just under US$64.

The US shale oil boom has provided markets with lots of crude, but the Opec report said that US activity would weaken next year.

Output by non-Opec countries is estimated to grow by just 2.17 mbd in 2020, a bit less than initially forecast.