OPEC January oil output plunges on new cuts, Libyan unrest

Published 31/01/2020, 17:48
© Reuters.  OPEC January oil output plunges on new cuts, Libyan unrest
LCO
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* Saudi, Gulf allies cut more oil than new deal calls for

* Nigeria, Iraq trim supply but still exceed new quotas

* Libyan output posts biggest drop on unrest

* Output by country, compliance: By Alex Lawler

LONDON, Jan 31 (Reuters) - OPEC oil output plunged in

January to a multi-year low as top exporter Saudi Arabia and

other Gulf members overdelivered on a new production-limiting

accord and Libyan supply dropped due to a blockade of ports and

oilfields, a Reuters survey found.

On average, the 13-member Organization of the Petroleum

Exporting Countries pumped 28.35 million barrels per day (bpd)

this month, according to the survey. That is down 640,000 bpd

from December's revised figure.

Despite the drop in supply, crude prices LCOc1 have

slipped to below $60 a barrel on concern that the coronavirus

outbreak could cut China's oil demand. This has prompted OPEC

and its allies to discuss holding an early meeting and taking

further steps to support the market. OPEC, Russia and other allies, known as OPEC+, agreed to

deepen an existing supply cut by 500,000 bpd from Jan. 1 2020.

OPEC's share of the new reduction is about 1.17 million bpd, to

be made by 10 members, all except Iran, Libya and Venezuela.

The 10 OPEC members bound by the agreement easily exceeded

the pledged cuts in January thanks to Saudi Arabia and its Gulf

allies cutting more than called for to support the market.

OPEC complied with 133% of the pledged cuts in January, the

survey found. In December, the group implemented 158% of the

promised curbs.

January's output was the lowest by OPEC since 2009, the year

in which the group implemented its biggest-ever supply cut due

to the financial crisis, excluding membership changes that have

taken place since then, according to Reuters surveys.

LIBYAN PLUNGE

Oil output in Libya has plunged since Jan. 18 due to a

blockade of ports and fields by groups loyal to eastern-based

commander Khalifa Haftar.

Production in Libya averaged 760,000 bpd during the month,

the survey found, down from 1.15 million bpd in December.

Saudi Arabia trimmed supply from December's rate,

voluntarily going beyond the reduction it is required to make

under the OPEC+ accord. Gulf ally the United Arab Emirates also

overdelivered, sources in the survey said.

The January survey suggests Nigeria and Iraq, both laggards

in making cuts in 2019, achieved some progress. Both countries

reduced output although they have more to do in later months.

Among countries pumping more, 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 January.

Production from the other exempt producer Iran, under U.S.

sanctions, was steady.

Ecuador left OPEC at the end of 2019, lowering OPEC

production by about 500,000 bpd. The country has been removed

from December's total to compare more easily production by

remaining members.

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

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(Editing by Susan Fenton)

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