Falling OPEC production helps reduce worldwide glut: EIA

Falling production from the Organization of the Petroleum Exporting Countries (OPEC) has contributed to global oil inventory withdrawals in 2017, the Energy Information Administration said Wednesday.

EIA estimates OPEC crude oil production averaged 32.9 million barrels per day (MMBPD) in the third quarter, down from an average 33.4 MMBPD in November 2016 (before the group’s voluntary production reductions), EIA’s monthly Short-Term Energy Outlook (STEO) reports.

Libya, which is exempt from any production reductions, increased crude oil output in September, but a shutdown at one of its largest oilfields at the beginning of October presents uncertainty about the country’s longer-term production potential.

Total OPEC crude oil production in the fourth quarter of 2017 is forecast to decline from the third quarter, averaging 32.7 MMBPD, Kallanish Energy reports.

Although unplanned OPEC supply outages remain low, crude oil prices may have increased based on a referendum in the Kurdistan Region of Iraq on Sept. 25, where the majority of people voted for independence.

Turkey sided with Iraq’s central government in opposing the vote. Turkey threatened to disrupt pipeline flows of approximately 0.5 MMBPD of crude produced in the Kurdistan Region that is exported from the Turkish port of Ceyhan.