* Supply falls by 120,000 bpd, led by Angola, Nigeria
* Saudi overall output slightly lower, exports steady
* Libyan recovery continues, Iraqi exports rise
* OPEC output 720,000 bpd above 30 million bpd target
By Alex Lawler
LONDON, Oct 31 OPEC's oil supply in October has
fallen by 120,000 barrels per day (bpd) due to lower production
in Angola and Nigeria, a Reuters survey found, although recovery
in Libya and growth in Iraq kept output close to September's
The survey also indicates Saudi Arabia and heavyweight Gulf
producers are showing no sign of deliberately cutting exports
to address oversupply and support prices that slipped to a
four-year low below $83 a barrel this month.
Supply from the Organization of the Petroleum Exporting
Countries has averaged 30.72 million bpd in October, down from a
revised 30.84 million bpd in September, according to the survey
based on shipping data and information from sources at oil
companies, OPEC and consultants.
OPEC pumps a third of the world's oil and meets in November
to set output policy for early 2015. Despite oil's drop below
$100, the price many OPEC members had endorsed, the group
appears unwilling to forego market share by cutting supplies.
"The big question for me is will OPEC be willing to reduce
its supply sufficiently to rebalance the market next year,"
Carsten Fritsch, analyst at Commerzbank in Frankfurt, said in
the Reuters Global Oil Forum. "I have doubts."
September's output was OPEC's highest since November 2012,
when it pumped 31.06 million bpd, according to Reuters surveys.
Involuntary outages, such as in Libya, kept output below OPEC's
nominal 30 million bpd target in earlier months of the year.
Lower exports scheduling from Angola and Nigeria reduced
supplies by a combined 100,000 bpd, while Saudi output was
assessed a marginal 50,000 bpd lower due to a reduced need for
crude to fuel domestic power plants.
"Exports are flat, refinery runs are not much changed and
direct burn lower, so overall supply is down," said one of the
sources who monitors Saudi output.
The shutdown of the Khafji oilfield, jointly run by Saudi
Arabia and Kuwait, slightly curbed Kuwaiti output but has not
affected Saudi production as Riyadh holds a vast amount of
capacity in reserve, sources in the survey said.
Of the countries boosting output, the largest gain has come
from Libya. Supply has edged up another 40,000 bpd in October,
although it fluctuated during the month due to bouts of unrest
and the rate of increase has slowed from earlier months.
In Iraq, oil output rose due to higher exports from the
country's southern terminals, despite some weather-related
delays, and increased output from fields in Kurdistan.
While some OPEC members have voiced concern over the drop in
prices, indications are that OPEC is unlikely to cut its output
target when it meets in Vienna on Nov. 27.
OPEC's most recent published forecast suggests demand for
its crude will fall to 29.20 million bpd in 2015 due to rising
supply of U.S. shale oil and supplies from other producers
outside the group.
However, OPEC Secretary-General Abdullah al-Badri this week
said demand for OPEC crude could be as high as 30 million bpd in
2015, taking into account "abnormal circumstances" such as
"I don't think 2015 will be far away from 2014 in terms of
production," he said during a visit to London. "I am sure the
market will balance itself."
(Editing by Dale Hudson)