OPEC crude oil production
A Reuters survey suggests that OPEC’s (Organization of the Petroleum Exporting Countries) crude oil production rose 70,000 bpd (barrels per day) to 33.6 MMbpd (million barrels per day) in September 2016, compared to the previous month. OPEC’s crude oil production rose due to the rise in production from Iraq and Libya in September 2016. For more on the IEA’s (International Energy Agency) estimates on OPEC crude oil production, read the previous part of the series.
OPEC’s crude oil production averaged 31 MMbpd and 32 MMbpd in 2014 and 2015, respectively.
EIA’s crude oil production estimates
The EIA (U.S. Energy Information Administration) estimates that OPEC’s crude oil production will rise to 32.7 MMbpd in October 2016.
Rising OPEC crude oil production could have a negative impact on crude oil prices. Lower crude oil prices could have a negative impact on the earnings of oil and gas exploration and production companies like Swift Energy (SFY), Goodrich Petroleum (GDP), and PDC Energy (PDCE).
The ups and downs in crude oil prices also impact ETFs and ETNs such as the ProShares UltraShort Bloomberg Crude Oil (SCO), the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), the ProShares Ultra Bloomberg Crude Oil ETF (UCO), and the United States Brent Oil ETF (BNO).
Impact on oil producers
OPEC didn’t cap its production at its meeting on June 2, 2016. OPEC’s next meeting is scheduled for November 2016. For more, read part one of this series.
Next, we’ll take a look at OPEC members’ crude oil production in September 2016. We’ll also look at annual production estimates for the producers.