Opec production stayed broadly flat in September, edging up slightly to 24.03mn b/d. The UAE made deep production cuts as it seeks to compensate for significant overproduction over summer, but this was offset by the relaxation of discipline by other non-compliant members. The ongoing restart of Libyan production facilities means that Opec’s production is likely to rise markedly this month.

Overall, the compensation mechanism is working well in keeping production levels down. Production from the ten Opec members subject to quotas (‘Opec 10’) came in 250,000 b/d below their combined ceiling. Perennial overproducer Iraq produced under its quota for the second consecutive month – an unheard of development – as it seeks to make up up for earlier overproduction by December (MEES, 18 September). (CONTINUED - 749 WORDS)