OPEC output rises as Saudi produces at record pace

There seems to be no respite for oil as November report showed, output from oil producer's cartel OPEC production edged up further. OPEC oil ministers last week met in Vienna. While production cut was expected by some in the market, OPEC ended up without a ceiling, which pushed oil to fresh new lows since 2008/09 financial crisis.

Those who were expecting some form of de-facto ceiling around 31.5 million barrels/day (based on rumor), today's report would be wakeup call that OPEC stands dysfunctional.

In November, production edged up to 31.7 million barrels/day from previous 31.5 million barrels. Previous ceiling was at 30 million barrels/day, which the group has been breaching since mid-2014, despite drop in oil prices.

Production might go rampant across members, if future evidence shows that after Vienna meeting some members, other than Iran are increasing output at fast pace.

Saudi Arabia's production touched highest pace this year at 10.6 million barrels/day, however it November it pumped 10.1 million barrels/day, still way above 2014 average of 9.7 million barrels/day. Saudi kingdom just decided to ignore the calls of OPEC rivals to cut back on production since it contributes to almost a third of the production.

November's rise was due to Iraq, where production rose from 4.1 million barrels/day to 4.3 million barrels/day.

WTI is currently trading at $37.4/barrel and Brent at $3/barrel premium.