Production of the 19 OPEC members bound by quotas under the oil agreement is down by 50,000 barrels per day — to 38.33 million bpd last month, leaving an estimated 1.77 million bpd gap between alliance supply and its official targets.
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OPEC production fell by 1.77 million barrels per day below the agreement level
A report by the International Energy Agency showed today, Wednesday, that oil production in the OPEC countries last December was 1.77 million barrels per day less than the level allowed under the oil agreement.
“Production by the 19 OPEC members bound by quotas under the oil agreement fell by 50,000 barrels per day – to 38.33 million barrels per day last month, leaving an estimated gap of 1.77 million barrels per day between the alliance’s supply and its official targets,” the agency’s monthly report said. “.
The report added that because of the sanctions, Russia lags behind the permitted production levels more than other OPEC members, while Nigeria and Angola do not fully benefit from their share due to production problems and lack of production capacity.
The International Energy Agency believes that, in general, the 23 countries belonging to the OPEC alliance cut oil production last December to 44.53 million barrels per day, or 10,000 barrels per day.
It is noteworthy that the significant increase in production in Nigeria was offset by a decrease in the United Arab Emirates and Russia. Meanwhile, Saudi Arabia, Iraq and Kuwait continued to produce oil at the November level.
OPEC countries cut their production in December by 40 thousand barrels per day – to 29.19 million barrels per day, while non-OPEC partners increased oil production by 30 thousand barrels per day – to 15.34 million barrels per day.
According to IEA assessments, OPEC production will decline in 2023 mainly due to the impact of the embargo and price ceiling imposed by unfriendly countries on Russian oil and petroleum products.
On the other hand, the volume of production in Saudi Arabia and the neighboring Gulf countries is expected to remain largely unchanged compared to 2022 if the coalition agreement on the reduction of two million barrels per day remains in effect, while Libya, Nigeria and Kazakhstan enjoy significant growth potential.
Earlier, the “OPEC” countries and the “OPEC +” coalition excluded the International Energy Agency’s data from their accounts, replacing it with information from the “Wood Mackenzie” and “Rystad Energy” research and consulting companies.
The Russian Deputy Prime Minister, Alexander Novak, explained that taking such a decision is due to the bias of the International Energy Agency, as some of its positions can be seen in its own reports, through an analytical study of the energy market.