This was the highest level in three and a half years and beyond its 30 million ceiling target.
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Opec as a whole pumped more oil in November than in any month since 2008 despite forecasting little demand growth for crude next year in a bid to defend market share.
Saudi Arabia, the group’s kingpin and the world’s largest export, held its output steady at 10.19 million barrels a day last month, according to the IEA. The IEA said it expects a decline in non-OPEC production in 2016, as US light tight oil shifts into contraction, and it that further spending cuts could spur deeper output declines.
“Oil markets are likely to run out of onshore crude storage in 1Q16”, PIRA Energy said this week.
USA crude futures for January delivery were last at $36.27 a barrel, the weakest since February 2009, down 1.37% for the day.
USA crude oil also fell, down 50 cents to $36.12 a barrel.
“This view was reinforced by the conclusion of the December 4 OPEC meeting in which the cartel chose to continue its policy of non-intervention in the market, postponing major decisions until the next scheduled meeting in June 2016”.
“Comments from the IEA have… seen both WTI and Brent fall aggressively, after they indicated that the unrelenting supply would see oil prices lower into the new year”, said analyst James Hughes at trading firm GKFX. The group’s report on Thursday signaled that plan had shown some success in driving out American production that requires higher prices, but the market overall hasn’t recovered, with Brent crude slumping below $40 a barrel in recent days. “There is unlikely to be any kind of “happy ending” for oil prices this year”.
In the past OPEC has responded to price falls by curbing production.
World oil demand is anticipated to have risen 1.53 million barrels per day in 2015 to average 92.88 million, it said.
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The new December monthly report suggested however that its ploy may be taking longer than expected to bite, with the cartel obliged to increase its forecast for 2015 non-OPEC production.
