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OPEC might lower its production target when its members next meet in late November, in response to ever-weakening demand for its oil in the face of rising non-OPEC supplies, the group’s Secretary General ‘Abd Allah Salem al-Badri said in Vienna this week.
With OPEC output seemingly now back on the rise however – total production has increased month-on-month since April – there is a looming question on the horizon, and that is how the group proposes to make the cuts, and more specifically which countries would be prepared to scale back production.
OPEC production hit 30.41mn b/d in August, according to MEES estimates, as rising volumes in Nigeria and Angola, supplemented by the ongoing recovery in Libya, more than offset a huge 400,000 b/d drop in Saudi output (MEES, 5 September). This represented the third consecutive month total production held above the mutually-agreed 30mn b/d nominal output target, in place since December 2011. (CONTINUED - 1015 WORDS)