Global oil output stalls on Libyan losses
Global oil production fell by 775,000 barrels a day (b/d) in August, to 91.6 million b/d, as soaring Saudi Arabian output failed to completely offset Libyan losses
Opec crude output came in at 30.5m b/d in August, down by 260,000 b/d, according to International Energy Agency (IEA) figures. Libyan oil production fell a post-war low of 150,000 b/d at the beginning of September because of labour disputes, civil unrest and political division between the government and tribal militias. Libyan production, which was 1m b/d in July, slid to 550,000 b/d in August.
Saudi Arabia’s oil production reached 10.19m b/d in August, its highest level in 32 years. Increased Saudi Arabian output is being exported to Asia, partly to replace supply losses from former Soviet Union producers cutting exports, seasonal maintenance worldwide and lower output in China due to flooding.
The IEA increased its estimated call on Opec crude by 200,000 b/d for the third quarter of 2013, to 29.6m b/d, because of expectations of higher global oil demand. However, the agency has however lowered its estimate for the fourth-quarter call by 100,000 b/d to 30.3m b/d.
Despite disruptions in Libya, global crude supply is expected to increase in the fourth quarter as seasonal maintenance in the North Sea and the US Gulf of Mexico come to an end.
Meanwhile, non-Opec production in August fell by 510,000 b/d, to 54.5m b/d. Capacity ramp-ups in the US and Canada failed to offset seasonal declines in the North Sea, shut-in production in China because of flooding, and offshore maintenance in Kazakhstan and Ghana.
Non-Opec output is expected to increase by 520,000 b/d in the third quarter, as a seasonal decline in North Sea output will be offset by higher North American supply.
The IEA said commercial oil stocks stood at around 2.7bn barrels in July, a build of 8m barrels. Preliminary data indicate there was a 14.2m barrel draw in oil inventories in August.
Global refinery crude runs were 78.2m b/d in July, up 1m b/d month-on-month and 1.8m b/d above year-earlier levels.