Oil production nears pre-Iran war levels, OPEC says

Detailed summary

Saudi Arabia reports oil outputs soared to highest levels in months despite continued shipping disruptions.

Saudi Arabia has boosted crude outputs to their highest levels since before the Iran war disrupted supplies in February, triggering a global energy and shipping crisis.

An OPEC report issued on Wednesday said the world’s biggest oil exporter pumped 10.563 million barrels per day (bpd) of crude in October, up by over two million bpd from its September output.

That is the highest level since the United States and Israel launched the war on Iran in late February, when Saudi Arabia produced 10.882 million bpd.

Rising oil production by Saudi Arabia and Russia helped increase outputs for the OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and other nations including Russia.

OPEC+ pumped 41.23 million bpd in October, up by about 2.04 million bpd from September, according to its monthly report. Russia’s output increased as US President Donald Trump lifted sanctions on Russian energy and announced an “energy ceasefire” between Ukraine and Russia in mid-October.

Riyadh sharply increased its production in February ahead of US and Israeli strikes on Iran.

Saudi Arabia’s reported increase in oil production “could help ease some of the inflationary pressure facing American consumers”, Umud Shokri, an energy strategist and senior visiting fellow at George Mason University, told Al Jazeera.

“When more oil enters the global market, prices generally come under downward pressure, which can eventually translate into lower gasoline, transportation, and production costs in the United States,” he said. “However, higher Saudi production does not automatically mean lower prices at American gas stations.”

While US prices for petrol or gasoline fell below $4 a gallon for the first time in months this week, concerns over the stubbornly high cost of living drove the Democratic Party’s sweeping victories in US midterm elections last week.

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