Crude oil prices fall to lowest since May

The Organization of the Petroleum Exporting Countries (OPEC) increased its oil output by 400,000 barrels per day (bpd) in September, bringing total output last month to 29.05 million b/d, according to Bloomberg calculations based on ship tracking data, officials and estimates from consultants Rapidan Energy Group, FGE, Kpler Ltd. and Rystad Energy.

The 12-nation cartel has now completed a 2.2 million b/d recovery of output, ending restrictions that were in place in 2023.

Saudi Arabia and its partners are seeking to regain market share lost over years of output curbs. The coalition is now moving to gradually lift another 1.65 million b/d of curbs.

In particular, Saudi Arabia increased its production in September by 320,000 barrels to 9.98 million bpd, which is exactly in line with its quota under the OPEC+ agreement for that month. At the same time, Saudi oil exports rose to an 18-month high, according to Bloomberg calculations.

Oil exports from Venezuela also rose to a five-year high after Chevron Corp. received a license to continue operating in the country despite US sanctions. The country increased production by 90,000 barrels to 1 million bpd.

Production in Iraq remained stable at 4.32 million bpd. However, this level is already significantly higher than the OPEC+ target.

After the publication of these data, oil prices fell to their lowest level in almost five months.

In particular, the price of US West Texas Intermediate crude fell more than 2% in trading on Thursday to $60.48 per barrel, the lowest since early May. Brent fell to around $64 per barrel, the lowest since late May.

OPEC+ members are expected to agree on an additional increase in production quotas at a meeting this weekend. At the same time, the shutdown in the US is weighing on prices, Bloomberg notes.

Tags: prices