OPEC fulfills agreements to reduce oil production
2022.11.30 12:49
OPEC fulfills agreements to reduce oil production
Budrigannews.com – A Reuters survey found on Wednesday that OPEC oil output has decreased in November, led by top exporter Saudi Arabia and other Gulf members, as the broader OPEC+ alliance pledged drastic output cuts to support the market in the face of a worsening economic outlook.
The Association of the Petrol Sending out Nations (OPEC)pumped 29.01 million barrels each day (bpd) this month, the review found, down 710,000 bpd from October.OPEC output had reached its highest level since 2020 in September.
As demand returned, OPEC and its allies, referred to as OPEC+, increased output for the majority of 2022. The group cut its budget by the most since the beginning of the COVID-19 pandemic in 2020, when oil prices fell and there was concern of a recession.
Their decision for November called for a reduction of the OPEC+ output target by 2 million bpd, with approximately 1.27 million bpd coming from the 10 participating OPEC nations.
As a result of inadequate investment and, in the case of Nigeria, crude theft, many producers, particularly Angola and Nigeria, lack the capacity to pump more, output has been below targets.
According to the survey, the 10 members’ monthly output decreased by 720,000 bpd, placing actual production 800,000 bpd below the group’s November output target. In October, there was a 1.36 million bpd shortfall.
The survey found that OPEC over-delivered on its pledged cuts in November with a compliance rate of 163% because production was below target.
It is not anticipated that OPEC+ will alter its output policy when it meets virtually on Sunday.
The survey found that Saudi Arabia cut production by 500,000 bpd in November, nearly all of the promised amount.Kuwait and the United Arab Emirates imposed the next largest restrictions.
According to the survey, Iraq, OPEC’s second-largest producer, barely decreased output in November despite calling for an increase in its quota. Algeria cut roughly half of the pledged amount.
The survey found that Nigeria and Angola each increased output in November, but both are pumping far below their quotas. Nigeria saw the largest increase in OPEC thanks to increased exports of Forcados crude.
Libya, Iran, and Venezuela, all of which are exempt from OPEC’s output cuts, saw little change in production.
The purpose of the Reuters survey is to monitor market supply.It is based on information from tanker trackers like Petro-Logistics, sources at oil companies, OPEC, and consultants, shipping data from outside sources, Refinitiv Eikon flows data, and more.
