TEHRAN (FNA)- OPEC’s oil supply is expected to fall sharply in September because of lower output from members including Saudi Arabia and Iran, industry consultant Petrologistics said on Wednesday.
The estimate boosted oil prices and indicates that the Organization of the Petroleum Exporting Countries was starting to cut supplies even before it agreed on Sept. 10 to trim output back to official targets.
OPEC’s 13 members are expected to pump 32.6 million barrels per day in September, down from a revised 33.4 million bpd in August when output was unusually high, Conrad Gerber, head of Petrologistics, told Reuters.
“Things have come back to normal,” Gerber said. “This has nothing to do with the OPEC decision. That reduction will come later on.” Much of the cutback is coming from OPEC’s largest producer, Saudi Arabia, which supplied more oil than previously thought to customers in August.
Top exporter Saudi Arabia is expected to pump 9.55 million bpd in September, down from 9.7 million bpd in August. The kingdom raised output earlier in the year partly to quell what it saw as unacceptably high prices. Oil prices rose after the Petrologistics estimate was released, oil analyst Olivier Jakob of Petromatrix said in a note. US crude was up $2.49 at $109.10 a barrel at 1135 GMT. OPEC pumps two in every five barrels of oil.
Iranian supply is forecast to decline to 4.05 million bpd from 4.4 million bpd in August. Its exports can vary month-to-month, affecting supply, while oilfield production remains steady. The Petrologistics estimate suggests the 12 OPEC members bound by deals to set supply policy, all except Iraq, are producing 30.4 million bpd, more than their informal target of 29.67 million bpd.
OPEC at its meeting in Vienna on Sept 9-10 adopted a lower target of 28.8 million bpd for 11 members, all except Indonesia, which will suspend its membership from Jan. 1, and Iraq.