Saudi Arabia raised its crude oil production by 26% in October, reaching 10.56 million barrels per day (bpd), according to reports from OilPrice.com and Moneycontrol. This output is close to pre-war levels and exceeds the country's OPEC quota of about 10.5 million bpd. This increase is the highest production level since February, just before the Iran conflict disrupted supplies in the region.
Key Details
Saudi Aramco's production data showed that net supply to the market was 9.203 million bpd, with the rest stored. The rise in output comes as OPEC plans to review production limits for 2027 at a meeting set for November 29. Iraq also reported a rise in production, exceeding its OPEC+ target, as Gulf producers work to restore supplies amid ongoing geopolitical tensions.
Background
Despite the increase in output, global oil prices showed signs of weakness. Brent crude rose by 1.4% to $92.73 per barrel. West Texas Intermediate (WTI) gained 1.3% to $87.13. The rise in prices has been limited by concerns over regional stability, especially after a recent attack on Saudi Arabia's East-West pipeline. This attack caused a small fire but did not disrupt operations.
The increase in Saudi oil output is likely to affect global oil prices, especially Brent and WTI, as supply levels adjust amid ongoing conflicts in the region. Investors will pay attention to the upcoming OPEC meeting, where production targets for 2027 will be discussed. This meeting could impact future output strategies.
Based on reporting by: oilprice.com, moneycontrol.com