PARIS: Output by Opec oil producers has reached record levels, the International Energy Agency (IEA) said yesterday, raising fears a global oil glut will continue to weigh on markets unless the cartel agrees on a cut.
Production by the 14 members of Opec rose to a record 33.83 million barrels per day (bpd) in October, the IEA said, just weeks ahead of talks aimed at hammering out a deal to curb production.
In a surprise move, the Organisation of the Petroleum Exporting Countries members agreed in Algiers in September on a deal to trim production, sending crude prices surging.
The accord aims to stabilise prices that have dramatically fallen since 2014, deeply hurting producers across the board, but its details are to be determined at Opec’s meeting on November 30 in Vienna.
The Paris-based IEA said Opec had raised its output for five months running, led by Iraq and Saudi Arabia.
“October proved to be another record-breaking month for Opec, with crude oil output rising 230,000 bpd to 33.83m bpd,” it said in its monthly report.
Its October level was “well in excess of the high end of the proposed output range” of between 32.5m bpd and 33m bpd agreed by Opec in Algiers, the agency said.
“This means that Opec must agree to significant cuts in Vienna to turn its Algiers commitment into reality,” it added.
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