According to a recent Reuters survey, OPEC’s oil production went up in December, even though the OPEC+ group agreed to cut production goals to help the market.
According to the poll, the Organisation of the Petroleum Exporting Countries produced 29 million barrels per day in December, an increase of 120,000 BPD over the previous month. As a result, OPEC’s output reached its highest point in September 2020.
The recovery in Nigeria’s output, which has been fighting for months against crude theft and instability in its oil-producing region, was the main driver of December’s increase.
According to the poll’s sources, many crude streams in Nigeria made more oil in December, and some businesses said that security had gotten better.
OPEC+ increased production for most of 2022 as demand increased. However, the business reduced its production plans for November by the most since the early stages of the COVID-19 pandemic in 2020 due to falling oil prices.
In its November decision, OPEC+ agreed to cut its output goal by 2 million BPD, of which 1.27 million BPD was expected to come from the ten OPEC countries.
A goal just like that was established for the month of December. According to the findings of the study, compliance with the agreement dropped slightly from 163% in November to 161% of pledged reductions in December as a direct result of the increase in Nigeria’s output.
Because a large number of producers, like Nigeria and Angola, are unable to pump at the agreed-upon rates, production is continuing to fall short of the levels that are wanted.
According to the findings of the study, the ten OPEC countries that were required to lower output pumped 780,000 BPD less than the group’s target for the month of December. There was a deficiency of 800,000 BPD in the month of November.