Saudi Arabia announced that it has increased its crude oil production to 10.563 million barrels per day in October 2023. This figure is close to pre-war production levels and slightly above the country's OPEC quota of 10.5 million barrels per day.
Significant Production Increase
Saudi oil production in October increased by 26% compared to September, rising from 8.372 million barrels per day to its highest level since February 2023. At that time, the country's production was 10.882 million barrels per day, which was the last month before the outbreak of the Iran war that disrupted oil supply in the Middle East.
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According to official Saudi data, net oil supply to the market (excluding storage) was 9.203 million barrels per day, with the remainder of production in October allocated to storage.
Export Routes and Security Situation
Saudi Aramco exports its oil through two routes, including the Gulf terminals and the East-West pipeline to the city of Yanbu on the Red Sea. On Monday, an attack on this pipeline caused a limited fire that emergency teams quickly extinguished, and operations continued. This was confirmed by the Saudi Ministry of Energy.
OPEC's monthly report, based on secondary sources, announced total OPEC oil production in October at 41.23 million barrels per day, an increase of 2.04 million barrels per day compared to September. Meanwhile, Iran is facing production of about 1.91 million barrels per day, the lowest level in 40 years. This production decrease is due to the blockade of the country's exports by the United States Navy.
Iraq's Minister of Oil, Basem Mohammed Khayr, announced last week that Iraq's oil production is over 5 million barrels per day, significantly higher than OPEC's target of 4.431 million barrels per day. Following these statements, the Iraqi Ministry of Oil emphasized that it will adhere to this ceiling, and production has increased in October, although no exact figure was provided.
The International Energy Agency (IEA) estimated Iraq's oil production in September at 4.1 million barrels per day. OPEC is reviewing the maximum production capacity of each of its members, and the organization's ministerial meeting is scheduled for November 29 to set production targets for 2027.
In the global market, Brent crude oil prices have risen by 1.4% to $92.73 per barrel, while West Texas Intermediate (WTI) has also increased by 1.3% to $87.13 per barrel. Additionally, attacks on shipping in the Strait of Hormuz have raised concerns about the possibility of a ceasefire between the United States and Iran.
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