Opec output slides as producers ease supplies

Published on Monday 2 November 2009 21:06

OPEC oil supply fell in October, the first decline since April, as lower output from Saudi Arabia, Iraq and Nigeria offset a further rise from Angola, according to a survey released yesterday.

Supply from the 11 members of the Organisation of the Petroleum Exporting Countries which have output targets eased to 26.38 million barrels per day from 26.4 million in September, the survey found.

The study suggested Opec has made 63 per cent of promised supply cutbacks.

The price of oil has recovered to almost $80 a barrel, up more than 70 per cent this year, in part because of lower supply from the producer group.

Oil prices rose further yesterday after strong manufacturing data from the US and China.

Amrita Sen, an analyst at Barclays Capital, said: "Given that prices have recovered quite rapidly, Opec's focus is likely to start considering managing the upside, whereas so far this year the focus has naturally been on defending the downside."