RIYADH: Saudi Arabia’s oil production will recover in October and November to levels above those seen before attacks on its energy installations in September, energy minister Prince Abdulaziz bin Salman said yesterday.
Production by the world’s largest oil exporter will reach 9.86 million barrels per day (bpd) in October and November, the minister said at a Russian-Saudi investment event in Riyadh.
Output fell by 660,000 bpd from August to 9.13m bpd in the wake of the September 14 attacks.
The attacks knocked out half of the kingdom’s oil production, or five per cent of global output, sending oil prices soaring. But a quick recovery in production, coupled with concerns about slowing global economic growth, have reversed all those gains.
Prince Abdulaziz said Saudi Arabia’s production capacity would reach 12m bpd by the end of November. Current exports stand at around 6.9m bpd.
Saudi Arabia will continue with voluntary output cuts – part of a global deal by producers aimed at propping up prices – of around 400,000 bpd, he added
Compliance by Opec and non-Opec producers with the deal is seen at above 200pc in September, sources said yesterday.
The Saudi minister called for a focus on stability of the oil market, rather than prices.
Opec members and allies, a grouping known as Opec+, meet next in December to decide on output policy for 2020.
“We hope that Nigeria, Gabon, South Sudan and Iraq will be fully compliant with Opec+ deal in October,” Prince Abdulaziz sai, referring to countries that have missed targets.
Speaking at the same event, Russian Energy Minister Alexander Novak said there were no talks underway to change the global output deal.
Moscow is fully committed to the deal, he added.
At an oil event in Kuwait City, Kuwaiti oil minister Khaled Al Fadhel said the prospect of talks about a deeper cut in production were “up in the air”.
An Opec+ committee, known as the JMMC, will continue to monitor the oil market to see whether there is a need for a deeper cut or to continue at current levels, he said.
Any decision has to be taken by all members, he added.
There was a strong agreement between Opec and non-Opec producers to balance the market and that would continue, the Kuwaiti minister said.
The deal between Opec, Russia and other non-Opec producers aims to reduce output by 1.2m bpd until March 2020 amid forecasts of excess supply next year.