The Organization of the Petroleum Exporting Countries (OPEC) oil production declined by 130,000 barrels per day (b/d) to 30 million b/d in September, due mainly to lower volumes fromSaudi Arabiaand sabotage-hitNigeria, a just-released Platts survey of OPEC and oil industry officials and analysts showed.

The drops in Saudi and Nigerian output, along with other small dips in theUnited Arab Emirates,KuwaitandIran, more than offset increases totaling 150,000 b/d fromAngola,LibyaandIraq.

Reduced use of crude in power generation was offered as one reason for the lower estimates of Saudi production. However, given the recent downtrend in crude prices and expectations that Libyan production will ramp up, some participants suggested thatSaudi Arabia's October output might see a further dip.

"The main factor to watch in the next few months is just how much Libyan crude comes back on the market, and whether other producers need to make way for it," saidJohn Kingston, Platts global director of news. "Long-term, there's one thing to note: there are a few examples of oil-exporting countries that have gone through enormous change recently –Iran,Iraq,NigeriaandVenezuela– and had their production return to pre-turmoil levels.Libyawould be challenging the odds to get back to its original 1.6-million-b/d production level."

Libya's current production is estimated at around 350,000 b/d following the resumption of output in recent weeks from a handful of fields. These include the fields operated by Benghazi-based Agoco, the Al-Jurf offshore field operated jointly byFrance's Total and the National Oil Corporation, and the Abu Attifel field operated by the Mellitah Oil Company joint venture withItaly's Eni.

The Platts survey peggedLibya's average September production at 90,000 b/d, which represents a month-on-month increase of 70,000 b/d.

Oil prices have declined recently from the 2011 peaks seen in April. Brent crude oil futures prices settled below$100per barrel the week that endedOctober 7for the first time since February as concerns about the global economy in general and the Eurozone area in particular cast a shadow over oil markets.

OPEC, following an impasse at itsJune 8meeting, currently has no agreement on output levels. OPEC kingpinSaudi Arabia, which wanted the organization to increase actual production by 1.5 million b/d in June, sees the previous agreement as redundant. Iranian officials, however, continue to refer to the previous agreement as the basis for any future decisions on output.

That pact, based on 4.2 million b/d of output cuts which came into effect inJanuary 2009, set a target of 24.845 million b/d for the 11 members bound by quotas (OPEC- 11).Iraqdoes not have a quota.