Libya’s Oil Production Boost Drives OPEC Output Higher in October

OPEC's oil production surged by 466,000 barrels per day (bpd) in October, primarily due to the return of Libya’s oil production to full capacity. The increase in output came just two months ahead of OPEC's planned reversal of part of its production cuts, set to begin in January 2025.

According to OPEC’s Monthly Oil Market Report, total crude oil production across the cartel’s 12 members averaged 26.53 million bpd in October, up from September’s figures. The biggest contributor to this increase was Libya, which saw a dramatic rise in its output by 556,000 bpd after a political crisis that had previously halted more than half of the country’s production was resolved.

Libya's oil industry had suffered significant disruptions due to a political deadlock over the appointment of a new central bank governor. The standoff led to the suspension of much of Libya’s oil production throughout September. However, production resumed in early October, and Libya’s output is now estimated to have exceeded pre-crisis levels, reaching 1.3 million bpd.

Other countries that saw increases in production included Nigeria and Congo, while countries like Iran, Iraq, and Kuwait experienced declines. Iran's oil production fell by 68,000 bpd in October, a result of heightened tensions in the region and concerns over a potential Israeli strike. Despite a limited Israeli attack on Iran’s oil infrastructure in early October, Iran reduced its oil output and exports to minimize risk, particularly at Kharg Island, its largest oil export terminal.

Saudi Arabia, the largest producer in OPEC, kept its production stable at just below 9 million bpd, in line with previous commitments to maintain production levels. The kingdom’s output remains critical in balancing global oil supply and demand.