OPEC’s oil output set another record high in November ahead of a deal to cut production, a Reuters survey found on Monday, helped by higher Iraqi exports and extra barrels from two nations exempted from cutting supply – Nigeria and Libya.
The latest rise in supply means the Organization of the Petroleum Exporting Countries will have a bigger task in complying with a plan to cut supply starting in 2017 – its first production-reduction deal since 2008.
Supply from OPEC increased to 34.19 million barrels per day (bpd) in November from 33.82 million bpd in October, according to the survey based on shipping data and information from industry sources.
Brent crude LCOc1 rose above $55 a barrel on Monday, trading at a 16-month high, on prospects of a tighter market next year following OPEC’s deal. Prices are still half their level of mid-2014.
“OPEC’s decision to cut production has removed a lot of downside risk for 2017,” said Bjarne Schieldrop, chief commodities analyst at SEB, even though “some cheating is a natural habit among OPEC’s members”.