Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, Gabon, the UAE (United Arab Emirates), and Venezuela are members of OPEC (Organization of the Petroleum Exporting Countries).
OPEC members’ production
According to the EIA (U.S. Energy Information Administration), OPEC members’ crude oil production figures for September 2016 are as follows:
- Algeria: flat at 1.1 MMbpd (million barrels per day)
- Angola: a fall of 50,000 bpd (barrels per day) to 1.8 MMbpd
- Iran: flat at 3.7 MMbpd
- Iraq: flat at 4.4 MMbpd
- Kuwait: a rise of 10,000 bpd to 2.5 MMbpd
- Nigeria: a rise of 30,000 bpd to 1.5 MMbpd
- Saudi Arabia: a fall of 60,000 bpd to 10.5 MMbpd
- UAE: a rise of 10,000 bpd to 2.7 MMbpd
- Venezuela: a fall of 10,000 bpd to 2.1 MMbpd
For more information, read Iran’s Crude Oil Production Could Impact the Crude Oil Market and Will Saudi Arabia’s Crude Oil Production Strategy Work?
EIA’s crude oil production estimates
The EIA estimates that OPEC’s crude oil production will rise to 32.4 MMbpd in 2016 and 33 MMbpd in 2017. OPEC’s crude oil production averaged 31.8 MMbpd in 2015. The rise in OPEC’s crude oil production could have a negative impact on crude oil prices. Lower crude oil prices could impact the margins of producers like Northern Oil & Gas (NOG), Bill Barrett (BBG), and Bonanza Creek Energy (BCEI).
Volatility in oil prices also impacts ETFs and ETNs like the VelocityShares 3X Inverse Crude Oil ETN (DWTI), the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), the iShares Global Energy ETF (IXC), the Direxion Daily Energy Bear 3x (ERY), the First Trust Energy AlphaDEX Fund (FXN), the ProShares Ultra Oil & Gas (DIG), the Fidelity MSCI Energy (FENY), and the Vanguard Energy ETF (VDE). Read Analyzing Russia’s Crude Oil Production to learn more about bearish drivers.
In the next part of this series, we’ll look at global crude oil supply outages and their impact on crude oil prices.