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OPEC Sept Oil Output Rises on Libya Restart

OPEC Sept Oil Output Rises on Libya Restart

Thursday, 1 October, 2020 - 04:30
FILE PHOTO: A 3D printed oil pump jack is seen in front of displayed Opec logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

OPEC oil output has risen for a third month in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.

The 13-member Organization of the Petroleum Exporting Countries pumped 24.38 million bpd on average in September, the survey found, up 160,000 bpd from August's revised figure and a further boost from the three-decade low reached in June.

An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.

"While demand struggles to keep up, supply is rising," said Paola Rodriguez-Masiu, analyst at Rystad Energy. "Libya's production is coming back."

Libya and Iran are two of the OPEC members exempt from an supply pact by OPEC and allies including Russia, known as OPEC+.

The pact has helped to boost prices in 2020 from historic lows in April as the coronavirus crisis destroyed demand.

OPEC+ from May 1 made a record cut of 9.7 million bpd, or 10% of global output. Since August, the group has been pumping more as the cut tapered to 7.7 million bpd due to a partial demand recovery, of which OPEC's share is 4.868 million bpd.

In September, OPEC countries bound by the deal delivered 101% of the pledged reduction, the survey found, up from 100% in August.

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