OPEC oil production drops after attacks on Saudi installations

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PARIS, Oct 11, 2019 (BSS/AFP) – The OPEC oil cartel saw its crude
production fall in September, mostly due to production falling in Saudi
Arabia following attacks on its oil infrastructure, according to its monthly
oil report released on Thursday.

The Organization for the Petroleum Exporting Countries said its production
fell to an average of 28.49 million barrels per day (mbd) in September, a
drop of nearly 1.32 mbd, according to secondary sources.

Production by Saudi Arabia, the cartel’s biggest producer and the world’s
top exporter, fell by 1.28 mbd to just over 8.56 mbd.

September 14 attacks on Saudi state-owned Aramco facilities in Abqaiq and
Khurais initially halved the kingdom’s crude output and sent global energy
markets into a tailspin.

Abqaiq is the world’s largest oil processing facility and Khurais is a
major oil field.

The attacks were claimed by Yemen’s Huthi rebels. Saudi leads a military
coalition against the Iran-backed Huthis, which have carried out dozens of
cross-border drone and missile attacks on Saudi targets, including oil
facilities.

Washington has concluded that the strikes were launched from Iranian soil
and that cruise missiles were used. Tehran denies its involvement.

OPEC also once again trimmed its forecast for the growth in global oil
demand, to 0.98 mbd from 1.02 mbd, although that was due to downward
revisions to demand in the first half of the year.

Also revised lower was demand for petrol and diesel in the United States.

The cartel held its forecast for demand growth next year steady at 1.08
mbd.

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