OPEC: Oil Production Nears Pre-War Levels with Iran
Saudi Arabia increased its October oil production to 10.5 million barrels per day—almost reaching February's level
In October, Saudi Arabia produced 10.563 million barrels of oil per day—over 2 million barrels more than in September. This marks the highest level since late February, when the war with Iran began and production stood at 10.882 million barrels per day.
The combined production of OPEC+ rose by approximately 2.04 million barrels per day, reaching 41.23 million. October’s volume amounted to 97% of the 42.72 million barrels per day produced by the alliance in February. The increase is partly attributed to Russia’s higher output after U.S. President Donald Trump lifted sanctions on Russian energy and declared an 'energy truce' between Russia and Ukraine in October.
The rise in supplies could ease inflationary pressure on American consumers, according to energy strategist Umud Shokri. However, he noted that Saudi Arabia’s increased production alone does not guarantee lower prices at gas stations.
The report states that exports from Persian Gulf countries are partially recovering thanks to alternative routes, including ship-to-ship oil transfers. Saudi Arabia uses the East-West pipeline to deliver crude to the Yanbu port on the Red Sea, bypassing the Strait of Hormuz. The UAE has a similar advantage with its pipeline to Fujairah.
OPEC maintained its forecast for global oil demand growth: next year, it is expected to increase by 2.55 million barrels per day, averaging 108.3 million. The demand growth forecast for 2026 is 180,000 barrels per day. The organization also expects the Middle East economy to recover in 2027, driven by a resilient non-oil sector and domestic demand.
