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OPEC December oil output rises for sixth month led by Libya -survey

Published 06/01/2021, 15:02
Updated 06/01/2021, 15:06
© Reuters.

* OPEC December output rises 280,000 bpd from November
* Compliance to OPEC+ cut pledges weakens to 99%, lowest
since Aug
* UAE posts largest output rise among quota-bound members
* For production by country, click By Alex Lawler
LONDON, Jan 6 (Reuters) - OPEC oil output rose for a sixth
month in December, a Reuters survey found, buoyed by further
recovery in Libyan production and smaller rises elsewhere in the
group.
The 13-member Organization of the Petroleum Exporting
Countries pumped 25.59 million barrels per day (bpd) in
December, the survey found, up 280,000 bpd from November and a
further increase from a three-decade low reached in June.
OPEC output is set to rise further in January after OPEC+ -
which groups OPEC and other producers including Russia - agreed
to ease output cuts.
Under a deal on February output agreed on Tuesday, most of
OPEC+ will keep production steady while Saudi Arabia has offered
to make a big voluntary cut.
"The additional production cut by Saudi Arabia will probably
prevent the oil market from becoming oversupplied, which risked
happening otherwise," said Carsten Fritsch, analyst at
Commerzbank, referring to the first quarter.
In December, the biggest supply increase came from Libya, an
OPEC member which is exempt from OPEC+ cuts, the survey found.
Libyan output had been largely shut down for months due to
unrest.
The OPEC producers bound by the supply deal also boosted
output in December, the survey found, which meant their
compliance with agreed output cuts slipped to 99% from 102% in
November and hit their lowest level since August.

LIBYAN RECOVERY
Libya, a nation politically split between east and west, has
boosted production since eastern Libyan commander Khalifa Haftar
said in September his forces would lift their eight-month
blockade on oil exports.
The survey found Libya's output increased by 150,000 bpd in
December to 1.25 million bpd, a faster rebound than some
analysts and OPEC officials expected.
The United Arab Emirates raised supply by 70,000 bpd, the
highest rise among those OPEC countries bound by quotas.
However, it was still pumping below its target.
Smaller increases in Iraq, Nigeria and Angola added further
to supply from the 10 members with quotas.
Iran, which is also exempt from OPEC cuts and hoping to
raise exports this year if U.S. sanctions are eased, also
boosted supply slightly.
No sizeable drop in output was seen in any OPEC country.
Venezuela, also under U.S. sanctions and contending with a
long-term drop in supply, pumped slightly less.
Top exporter Saudi Arabia kept output steady, as did Kuwait
and smaller producers including Algeria, Congo and Gabon.
The Reuters survey aims to track supply to the market and is
based on shipping data provided by external sources, Refinitiv
Eikon flows data, information from tanker trackers such as
Petro-Logistics and Kpler, and information provided by sources
at oil companies, OPEC and consultants.

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