Oil production from the Organization of Petroleum Exporting Countries
fell last month as higher Saudi output failed to offset a West African
drop.
According to a Dow Jones Newswires survey of industry sources
and analysts, crude-oil production from the group averaged 31.669
million barrels a day in September, down about 166,000 barrels a day
from 31.835 million barrels a day in August.
The decline in production was largely driven by lower
production in Angola and Nigeria, which a boost in Saudi output was
unable to offset.
Production in Angola and Nigeria, which have struggled to sell
high-quality crude that carries strong premium compared to others,
respectively fell by 97,000 barrels a day and by 92,000 barrels a day.
By comparison, Saudi Arabia increased production by 60,000 barrels a
day.
Venezuela's output was also down by 60,000 barrels a day,
likely because an outage at the country's largest refinery, the Amuay
complex, prompted a temporary reduction in production, Vienna-based
consultancy JBC said in a note. The declining production "should favour
oil prices," Commerzbank said in a note Monday. But the German bank said
that "once oil production in Angola and Nigeria returns to normal
levels...output should increase again."