OPEC Production Rose Last Month

(Bloomberg) -- OPEC’s production rose for a third month in December as a continued cease-fire in crisis-torn Libya enabled it to restore more supplies.
While the group’s dominant producer, Saudi Arabia, startled oil markets on Tuesday with a pledge to slash 1 million barrels a day next month, the current trend in OPEC output is upwards.
The Organization of Petroleum Exporting Countries increased supply by 190,000 barrels a day in December to 25.45 million a day, according to a Bloomberg survey.
It’s based on ship-tracking data, information from officials, and estimates from consultants including Rystad Energy AS, JBC Energy GmbH and Petro-Logistics SA.
Libyan output has increased roughly ten-fold since September, amid a tentative peace accord between rival factions jostling for control of the country. Exports have resumed following a decision by military leader Khalifa Haftar to allow shipments from the terminals he controls.
The North African country pumped 1.2 million barrels a day last month, exceeding the levels seen before Haftar initiated the blockade at the start of 2019. It’s the highest monthly average since October 2018, the survey showed.
This month is likely to see OPEC production swell again as the group and its partners implement an agreement to revive some output shuttered during the pandemic.
OPEC+, a 23-nation alliance that includes non-members like Russia and Kazakhstan, agreed to revive 500,000 barrels a day in January as world demand gradually improves. The coalition is currently halting 7.2 million barrels a day, or about 7% of global supplies.
But in February, the alliance’s output should fall steeply.
While most OPEC+ nations will keep supplies steady next month, the Saudis have promised a unilateral cutback intended to accelerate the re-balancing of the market.
Oil demand remains vulnerable as a more infectious strain of the virus triggers renewed lockdowns in Europe, and inventories are far above average levels because of the demand slump last year.
The kingdom, which the survey showed pumped 9 million barrels a day last month, will throttle back to about 8.1 million at the start of February and hold there until the end of March, Energy Minister Prince Abdulaziz bin Salman announced on Tuesday.
Crude prices rallied on the pledge, and traded near $54 a barrel in London on Wednesday.
--With assistance from Anthony Di Paola, Verity Ratcliffe, Salma El Wardany, Prejula Prem, Fabiola Zerpa, Brian Wingfield and John Deane.
© 2021 Bloomberg L.P.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Analyst Gives Year-End Oil Price Warning
- Fitch Solutions Unveils Latest Oil Price Forecast
- What Fueled Oil Price Downtrend?
- Transocean Contract Backlog Hits $7B+
- DOE Project To Prove U.S. Power Grid Can Fully Run On Clean Energy
- Oil Prices Drop to Levels Not Seen in Months
- Shell Makes Record Profits For Two Quarters In A Row
- OPEC+ Flags Severely Limited Availability of Excess Capacity
- Senator Sinema Key to Passing Schumer-Manchin Bill
- USA Gas Prices Hit 14 Year Seasonal High
- Ships Seized in Mariupol
- Oil Prices Hit Levels Not Seen Since April
- Over A Quarter Of Turbines Installed On Formosa 2 Wind Farm
- Saudis to Hike Oil Price to Record
- USA Diesel and Gasoline Demand Slip
- Texas Wind Power Failing When State Needs It Most
- Pantheon Hits Multiple Oil Reservoirs At Second Alkaid Well
- Guyana Just Keeps On Giving As Exxon Makes Two More Discoveries
- American Drivers Grab $3.11-a-Gallon Gas in Mexico
- Analyst Gives Year-End Oil Price Warning