World News
OPEC's Oil Output Hits Three-Year High
With over 31 million barrels per day (bpd) pumped in November, the Organization of the Petroleum Exporting Countries (OPEC) says its output volume for that month exceeded that of any month in the past three years.
According to OPEC's Monthly Oil Market Report published on December 10, November production rose by 230,100 bpd from October; the 31.695 million bpd total is almost 900,000 bpd more than the anticipated demand for OPEC crude in 2016 (OPEC pegs that demand at 30.8 million bpd).
OPEC believes weak oil prices will cause strong demand in the new year; however, it admits in its report that the 2016 demand forecast "is subject to considerable uncertainties, depending on the pace of economic growth, development of oil prices, and weather conditions, as well as the impact of substitution and energy policy changes."
The Wall Street Journal notes that the November figures, which were driven mainly by record Iraq production levels of 4.3 million bpd, are further proof that OPEC "has no plans to slow down its furious output."
Elsewhere in the report, OPEC downsized its non-OPEC 2016 output estimates to an average of 57.14 million bpd, due to declining U.S. shale-oil production: "This downward trend should accelerate in coming months, given various factors, mainly low oil prices and lower drilling activities."
The report also raised non-OPEC production growth estimates by 280,000 bpd to 1 million bpd, based on U.S., U.K., Brazil, Russia, and China production data.
OPEC's highly-anticipated December 4 meeting in Vienna, Austria ended with members failing to agree on a production ceiling, and OPEC secretary general Abdullah al-Badri being laughed at by analysts for declaring that his organization was as strong as ever.
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