OPEC increases oil cuts
2022.11.16 11:41
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OPEC increases oil cuts
Budrigannews.com – OPEC+ exports have fallen sharply this month, according to Petro Logistics, an oil major at Petro Logistics, suggesting members are offering a share of production cuts agreed to by the group and its allies.
OPEC+, which brings together the organization of the petroleum exporting countries (OPEC), Russia and other allies, has decided to reduce production by 11 million barrels per day, representing about 2% of world production from March 1, from March 11, due to growing concerns about a recession. 200
Oil Logistics said the opinion was an early assessment of how much OPEC is implementing the OPEC+ cuts and was determined in light of an uncertain global economic outlook. US President Joe Biden criticized the decision.
“OPEC+ exports fell sharply in the first half of the year, but weather problems mean that the first day of the month was unusually low,” Daniel Gerber, chief executive of Petro Logistics, told Reuters.
“We expect a slight recovery as we move into January, but the volume seems to drop significantly from the highs of the month.”
“I expect OPEC exports to decrease by up to 1 million barrels per day per month, which suggests that OPEC+ cuts are being implemented as promised,” he said.
OPEC+ headquarters in Vienna did not immediately respond when asked about the comments on oil logistics.
The share of OPEC+ cuts is 1.27 million bpd, so a drop of 1 million bpd in exports suggests that a significant part of the agreed cuts is being made in global supply.
The Geneva-based oil logistics has lost 100 million bpd of global production to tanker tracking and other methods due to a lack of timely information from the producers themselves.
OPEC+ is expected to release its next monthly oil market report on 12/1. We will publish the 13-month production results.
OPEC+ has increased production for most of the year, returning to a 10-month production cut, in an effort to ease the cuts made in 2020 during the worst period of the pandemic.
Members have not contributed part of the planned increase due to production capacity shortages in some countries, resulting in agreed reductions.
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