Financial Energy Review
Crude oil production from the OPEC+ countries increased by 130,000 barrels per day (bpd) to 42.73 million bpd in December 2023, as Iraq and African producers lifted their crude output, the Platts survey by S&P Global Commodity Insights showed on Thursday.
OPEC saw its crude oil output rise by as much as 160,000 bpd last month compared to November, for a total of 27.98 million bpd. The ten non-OPEC producers of the OPEC+ alliance, on the other hand, pumped 14.75 million bpd, down by 30,000 bpd from November, according to the survey.
December was the last month of the OPEC+ cuts for 2023, before new reductions of a total of around 900,000 bpd are coming into force in January for the first quarter of 2024.
Last week, the monthly Reuters survey showed that OPEC increased its crude oil production in December, collectively pumping 27.88 million bpd.
OPEC’s production rose by an average of 70,000 bpd, the survey showed, with production increases seen in OPEC’s second-largest producer, Iraq, as well as Angola—accounting for 60,000 bpd of the average. Nigeria also saw a production increase.
The group’s top crude oil producer and the world’s largest crude exporter, Saudi Arabia, on the other hand, saw its production decrease.
While OPEC’s crude oil production rose in December from November, it was still around 1 million bpd below the levels seen in December 2022.
At their latest meeting, OPEC and its partners, led by Russia, agreed to reduce their combined production of crude oil to some 2.2 million barrels daily. Saudi Arabia again agreed to the largest cuts. But production wind-downs are rarely instantaneous and require a bit of a wind-down period. December’s increase could indicate that the group will be unable to comply with its own rates set for January
To monitor compliance, OPEC+ will hold a Joint Ministerial Monitoring Committee (JMMC) meeting in early February, media sources revealed earlier this month.
