2024-01-04T10:27:21+00:00
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/ Bloomberg agency said that there are doubts prevailing among oil traders that the 22-nation OPEC+ alliance will fully meet the new supply restrictions that will take effect this month, as many members have already lost the largest possible amount of oil. Production and associated revenues at a level they can afford.
The International Energy Agency estimates that the reduction pledged by OPEC will translate into an actual reduction of about 500,000 barrels per day.
Iraq, with a patchy record on implementation and pressing financial needs for export revenues, will need to cut production by a significant 290,000 bpd in order to meet its January target.
The UAE made the largest reduction in supplies last month, reducing production by 70,000 barrels per day to 3.08 million barrels per day. Angola’s production also decreased again in its last month as a member of OPEC, as it fell by 40,000 barrels per day to 1.1 million. barrels per day.
The West African country refused to accept the reduced limit imposed by OPEC leaders, but its production in December – which had fallen due to years of underinvestment – was in line with the level it rejected.
Increases elsewhere mitigated lower supply from these two member states. Nigeria increased supplies by 50,000 barrels per day to 1.49 million per day in December, in line with the revised quota it successfully negotiated for this year.
OPEC+ will hold a follow-up online meeting to review market conditions on February 1, and ministers are scheduled to meet in person at the group’s headquarters in Vienna in early June.