According to statistics from Argus, OPEC+ is producing less oil than it is expected to, according to a survey done by Platts and published by Forex Live. According to the survey, the oil cartel was meant to pump a total of 37.141 million barrels per day in September, but the actual total was 570,000 bpd lower—even if it was higher than the previous month by more than the 400,000 bpd OPEC+ pledged to add to the market every month.
This means that while OPEC+ exceeded its monthly output hike, it fell short of its quota. According to Argus statistics, the September total was 6.712 million barrels below the OPEC+ agreed-upon baseline production limit.
The alliance has made no secret of its desire to proceed with caution in terms of output recovery. OPEC’s plan to maintain a monthly increase of 400,000 barrels per day (bpd) until total output increases to 5.8 million bpd still means lower output than before the outbreak of COVID-19. OPEC+ reduced output by 7.7 million barrels per day to combat the pandemic, which might keep prices higher for longer.
Brent crude has surpassed $80 a barrel this week, and West Texas Intermediate has done so for the first time in more than five years.
According to reports, the White House has already requested that OPEC pump extra oil twice this year.