Opec+ issues October crude output quotas

Opec+ has confirmed individual October crude production quotas for the 19 countries participating in its ongoing output restraint deal. On 1 September the group agreed to a 400,000 b/d increase in its collective output target next month compared with September.

The coalition decided to go ahead with the October hike — in line with a roadmap to unwind its cuts that was outlined in July — despite some pressure on demand in the short term. Further out, the group has revised its forecast for global oil demand growth in 2022 to 4.2mn b/d, from a previous 3.28mn b/d projection, according to an internal document compiled by the Opec+ Joint Technical Committee (JTC).

The group's de facto leaders, Saudi Arabia and Russia, have been set production quotas of just over 9.8mn b/d next month. Saudi Arabia's state-controlled Saudi Aramco is expected to release its official formula prices for October-loading crude exports in the coming days.

Some members of the group — such as Nigeria and Angola — may struggle to meet their higher targets. In Angola, a lack of investment and natural decline at mature fields drove crude output to the lowest in around 15 years in July, while production growth in Nigeria is proving a challenge because of infrastructure issues.

Opec members Iran, Venezuela and Libya remain exempt from the restraint agreement.

By Ruxandra Iordache