OPEC December oil output slips as Nigeria, Iraq comply more

Published 06/01/2020, 15:16
Updated 06/01/2020, 15:18
© Reuters.  OPEC December oil output slips as Nigeria, Iraq comply more

* Saudi oil output edges lower

* Nigeria cuts supply but still exceeds quota

* Angolan output posts biggest rise after maintenance

* Output by country, compliance: By Alex Lawler

LONDON, Jan 6 (Reuters) - OPEC oil output fell in December

as Nigeria and Iraq adhered more closely to pledged reductions

and top exporter Saudi Arabia made further cuts ahead of a new

production-limiting accord, a Reuters survey found.

On average, the 14-member Organization of the Petroleum

Exporting Countries pumped 29.50 million barrels per day (bpd)

last month, according to the survey. That is down 50,000 bpd

from November's revised figure.

Crude prices have rallied to above $70 a barrel in 2020,

extending a 23% gain in 2019, supported by ongoing OPEC-led

curbs and increased Middle East tensions after the killing of a

top Iranian general. This has increased concern of conflict that

could further cut supply.

"Looking ahead, geopolitical risks will remain front and

centre of investor concerns," said Stephen Brennock of oil

broker PVM.

"A tense waiting game has begun to see if the fallout will

lead to a disruption in regional oil supplies."

OPEC, Russia and other allies, known as OPEC+, had an

agreement to reduce supply by 1.2 million bpd in 2019. OPEC's

share of the cut was about 800,000 bpd, to be made by 11

members, with exemptions for Iran, Libya and Venezuela.

At meetings in December, OPEC+ agreed to make an additional

cut of 500,000 bpd as of Jan. 1, 2020.

The 11 OPEC members bound by the agreement easily exceeded

the pledged cuts, thanks in large part to Saudi Arabia and its

Gulf allies cutting more than called for to support the market.

The December survey suggests Nigeria and Iraq, both laggards

in making cuts in 2019, achieved some progress. Compliance rose

to 158% in December, the survey found, from 153% in November.

NIGERIAN DROP

OPEC's largest production drop of 80,000 bpd was in Nigeria,

which exported less crude according to ship-tracking data and

loading schedules.

Much of this decline came from reduced shipments of Bonga

crude, which traders say has been undergoing maintenance.

OPEC's two top producers, Saudi Arabia and Iraq, each

reduced output by 50,000 bpd. This puts Saudi supply more than

500,000 bpd below its 2019 target. Iraq's compliance, at 59%, is

far lower than Saudi Arabia's but is up from 23% in November.

The United Arab Emirates made a further voluntary curb in

December, while Kuwaiti output was steady.

Among countries pumping more, the largest increase was in

Angola, which boosted exports after maintenance affecting the

Girassol crude stream had curbed supplies.

Venezuela, which is contending with U.S. sanctions imposed

on state oil firm PDVSA and a long-term decline in output,

managed a small boost to supply with exports increasing in

December.

Production from the other two exempt producers Libya and

Iran edged lower.

The Reuters survey aims to track supply to the market and is

based on shipping data provided by external sources, Refinitiv

Eikon flows data and information provided by sources at oil

companies, OPEC and consultants.

OPEC oil supply cuts https://tmsnrt.rs/2OYm9OG

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.