OPEC’s Oil Output Declined by 20,000 Barrels per Day
The table below displays the OPEC oil output in millions (BPD) in October and September.
OPEC and its partners, known as OPEC+, agreed to a 100,000-barrel-per-day cut in oil output for October after raising the objective by the same amount in September.
In October, the ten OPEC nations bound by the agreement aim to produce 26.689 million barrels per day (BPD), a decrease of around 64,000 BPD from September’s objective.
According to the survey, they reduced output by 20,000 barrels per day to 25.33 million barrels per day. Nonetheless, this was 1.36 million BPD less than the accord intended.
After adjusting the estimate for Angola, September output was revised downward.
The statistics in the table’s first, second, and fourth columns are in millions of barrels per day. Venezuelan data contains synthetic oil that has been improved. Nigerian crude output includes the Agbami and Egina streams but does not contain Akpo condensate.
$40 Billion Deal with Russian Gas
Iran aims to conclude an energy agreement with Russian gas giant Gazprom for over $40 billion in December, according to a senior Iranian diplomat cited on Wednesday. The pact comes at a time when Russia and Iran are boosting bilateral cooperation, energy, and trade connections, all to use each other to counter Western sanctions.
Russia and Iran agreed earlier this week to establish a free trade pact with the Eurasian Economic Union. There is now a tremendous desire in both countries’ public and commercial sectors to neutralize the sanctions. According to Russia’s Novak, “the amount of Russian investment in Iran’s oil fields will expand.”
According to Goldman Sachs, European natural gas prices will fall by around 30% in the next months as nations gain a temporary advantage in supply difficulties.
The Dutch Title Transfer Facility is Europe’s primary natural gas price benchmark. On Tuesday, it was trading at roughly 120 euros per megawatt hour. According to a research report published this week, Goldman Sachs forecasts this benchmark to decline to 85 euros in the first quarter of 2023.
This would represent a major change from the levels witnessed in August. At the time, Russia’s unjustified invasion of Ukraine and the following strains on Europe’s energy mix drove prices to historic highs – more than 340 euros per megawatt hour.
Several factors have contributed to the current drop in gas prices: Europe’s gas storage is nearly full for the winter season, and liquefied natural gas is in short supply (LNG).
According to recent statistics, over 60 boats are waiting to release their LNG cargo in Europe. Some of these shipments were purchased throughout the summer and only came when storage became available. Indeed, according to the most recent data provided by the industry association Gas Infrastructure Europe, storage levels in Europe are at 94%.
Several factors will likely cause natural gas prices to rise after the first three months of 2023. Furthermore, Russian supplies have aided gas storage, which the EU has been attempting to wean itself off of. In October, Luxembourg Prime Minister Xavier Bettel also admitted that the warehouse was full of Russian gas. Since then, Russian supplies have suffered serious setbacks, and Europe’s goal is to eliminate Russian fossil fuels.
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