OPEC oil production drops in December as compliance grows: Reuters survey
Iraq and Nigeria notably cut their production in December, edging closer to compliance with the OPEC+ agreement to curb output
Oil output from the Organisation of Petroleum Exporting Countries (OPEC) dropped to an average of 29.5mn barrels per day (bpd) in December 2019, according to a survey by Reuters. OPEC output for that month was 50,000bpd lower than in November.
OPEC's deeper production cuts for 2020 are coming into effect; the organisation and its allies, collectively OPEC+, agreed to tighten output by 1.2mn bpd in 2019, and in December decided to deepen cuts by an additional 500,000bpd.
Saudi Arabia, which has shouldered additional cuts through 2019 to compensate for other members that did not fully comply with their quotas, will continue to overcomply with cuts, taking approximately 400,000 more barrels per day off the market.
The group has exceeded its cuts, Reuters found that compliance rose to 158% in December, up from 153% in November.
Output from Nigeria dipped 80,000bpd in December, which Reuters attributed to a decrease in Bonga crude shipments. Meanwhile, Saudi Arabia and Iraq each cut supply by 50,000bpd, putting Iraq's compliance at 59%, compared to 23% compliance in November.
The UAE made additional cuts in December, and production from Kuwait remained steady. Iran and Libya, both exempt from production cuts, decreased output.
Reuters noted that Angola saw the largest increase in production, as exports grew following maintenance activities. Venezuela also slightly boosted its production in December.