Saudi Arabia Raises Oil Output by 970,000 Barrels a Day to 9.2 Million in October
Key Facts
Saudi Arabia raised its crude oil production by 970,000 barrels a day in October to 9.2 million barrels a day, according to a Bloomberg survey cited by Rigzone on November 7. The increase came as OPEC’s total output rose by 930,000 barrels a day from September. The survey put the group’s October production at 22.8 million barrels a day. That was about 88% of the volumes the same members produced in February. Saudi Arabia’s increase was larger than the group’s net gain for the month.
Despite the monthly increase, Saudi output in October remained about 800,000 barrels a day below its level at the start of the year, the survey said. Meanwhile, the kingdom’s oil exports averaged 7 million barrels a day during the month. Exports thus came close to prewar levels, according to tanker-tracking data compiled by Bloomberg. The report linked the improvement in production to the kingdom’s increased ability to move tankers through the Strait of Hormuz. It also pointed to cargoes being loaded on the Red Sea coast as fighting related to the U.S.-Iran conflict continued.
Iraq was the second-largest contributor to OPEC’s October production increase, raising output by 140,000 barrels a day to 4.15 million barrels a day. Kuwait increased production by 130,000 barrels a day, bringing its average to 2 million barrels a day. By contrast, Iran’s output fell by 120,000 barrels a day to 1.9 million barrels a day. The Bloomberg survey described that level as the lowest in its monthly data, which date back to 1989. The moves show that the group’s production recovery during the month was uneven across its members.
The increase recorded in the October survey followed a broader recovery in supply during September. The International Energy Agency said global oil supply rose by 2.5 million barrels a day month over month to 102.3 million barrels a day. Gulf producers led the increase, while OPEC+ output rose by 2.1 million barrels a day, with Saudi Arabia the biggest driver. Crude exports from Gulf producers, led by Saudi Arabia, also rose by 4.4 million barrels a day to 13.9 million barrels a day. The region’s exports nevertheless remained below prewar levels, the agency said.
The IEA reported that oil flows through the Strait of Hormuz rose by 3.7 million barrels a day to 10.9 million barrels a day in September. Ship-to-ship transfers in the Gulf of Oman helped support those flows. Bypass exports through the East-West pipeline increased by 970,000 barrels a day to a total of 5.6 million barrels a day. In the oil market, dated North Sea crude rose by $26.17 a barrel month over month to $116.89 in September. The agency linked the price increase to renewed hostilities in the Middle East and faster buying by Asian refiners, and said Brent futures had risen 13% from the start of September through October 14.
The week before the report, Aramco Chief Executive Amin Nasser said at an industry conference in Abu Dhabi that the company aims to "maximize production during the fourth quarter." OPEC+ members are meanwhile reviewing each member’s technical production capacity ahead of setting targets for 2027. Ministers are scheduled to discuss those targets at their November 29 meeting. The seven countries participating in voluntary adjustments met virtually on November 1 to review market conditions and prospects. They decided to keep December production levels at the required levels for September 2026, reaffirming their commitment to full compliance with the Declaration of Cooperation and to continuing monthly meetings.