Lower supply from Nigeria, Algeria, and Iraq, the OPEC crude output in the month of October dropped by 80,000 barrel per day, the Oil Market Report (OMR) for November has revealed.
This came to light as the World Energy Outlook 2017 has projected that the global needs for energy would rise by 30 percent between now and 2040. The rise, the outlook pointed out, would be equivalent to adding another China and India to today’s global demand.
According to the November OMR, which was released alongside the WEO 2017 by the International Energy Agency (IEA), recently, “output of 32.53 mb/d, the lowest since May, was down 830 kb/d from the record rates seen a year ago.”
The IEA in the OMR, explained that the aforementioned proportion of drop in output was as a result of real interruptions in Iraq where shipments from the North fell by an estimated 170 kb/d in October, as well as lower production in Algeria, Nigeria, and Venezuela. “These supply disruptions, geopolitical concerns, a growing expectation that the OPEC/non-OPEC output accord will be extended through 2018 at the end of the month, and with demand growth still robust,” it added, “largely explain firmer prices.”