Opec will discuss at a meeting in November whether to extend or end production cuts, Kuwait’s oil minister Essam Al Marzouq told Kuwait TV.
“At our next meeting at the end of November…the most important items will concern the fate of the agreement to extend or terminate the production cut,” Marzouq in an interview.
He said oil inventories in recent weeks fell more than expected and that one-week forecasts were two million barrels a day, down from 6.5 million.
Opec oil supply is expected to fall by 419,000 barrels per day (bpd) this month, PetroLogistics said.
The 14-member Opec has agreed to cut output by about 1.2 million bpd until March 2018 in an effort to reduce inventories and support prices.
Compliance with the deal has been high so far but Opec production hit a 2017 peak in July, in part on increased output from Libya and Nigeria, which were exempted from the pact due to production-sapping unrest.
“Opec-14 supply is expected to average 32.8 million bpd in August representing a decline of 419,000 bpd as compared to the 2017 high observed in July,” Daniel Gerber, CEO of PetroLogistics, said.
“Opec crude oil exports fell by a whopping 750,000 bpd through the first half of August. An increase was observed in Latin American exports while decreases occurred in both the Middle East and Africa.”
However, top exporter Saudi Arabia has said its exports would drop to 6.6 million bpd this month, almost 1 million bpd below levels a year ago.