OPEC’s crude oil production
According to the EIA (U.S. Energy Information Administration), OPEC’s crude oil production fell by 150,000 bpd (barrels per day) to 32.77 MMbpd (million barrels per day) in August 2017—compared to July 2017. Production fell 0.5% month-over-month but rose by 61,000 bpd or 0.2% year-over-year.
OPEC’s crude oil exports
A Reuters survey estimates that OPEC’s crude oil exports fell by 920,000 bpd to 25.19 MMbpd in August 2017—compared to July. Saudi Arabia is OPEC’s largest crude oil producer and exporter. It’s expected to cut crude oil exports to worldwide customers by 520,000 bpd in September 2017 and 350,000 bpd in October 2017. As a result, OPEC’s crude oil exports could fall in September 2017 and October 2017. Any fall in OPEC’s crude oil exports is bullish for crude oil (FENY) (IXC) (IYE) prices.
OPEC’s crude oil production estimates
The EIA estimates that OPEC’s crude oil production averaged 31.66 MMbpd in 2015 and 32.69 MMbpd 2016. It’s expected to average 32.48 MMbpd in 2017 and 32.99 MMbpd 2018.
OPEC and the production cut deal
On September 10, Saudi Arabia’s energy minister discussed a possible extension of the production cut deal beyond March 2018 with Venezuela and Kazakhstan. Russia could also support extending the production cut deal.
In the next part of this series, we’ll see how Iran’s crude oil production could impact crude oil prices.