OPEC misses its oil production target again

OPEC continued to increase its oil production in November under the OPEC + agreement, but the organization continued to pump less oil than its share of the monthly increase, according to the Reuters monthly survey. have found Tuesday.

Under the OPEC+ agreement, the 10 OPEC+ members bound by the OPEC+ agreement must raise their combined production by 254 thousand barrels per day per month from the total monthly supply of OPEC + 400,000 barrels per day.

In November, OPEC crude oil production increased by 220,000 barrels per day to 27.74 million barrels per day, according to a Reuters survey.

Once again, the rise was less than the 254,000 bpd increase that OPEC should implement.

The Reuters survey confirms a trend that began a few months ago – not all OPEC members have the ability to pump to their full quotas.

Estimates from secondary sources in the latest monthly OPEC Oil Market Report (MOMR) with data for October continued to show what analysts, tanker tracking companies and previous OPEC monthly reports showed: The cartel lacked marksmanship Its collective share of production – mostly due to the lack of ability of some members to pump crude oil into their quotas.

A Reuters survey showed that due to a drop in production from the target, OPEC’s commitment to the cuts jumped to 120 percent in November, up from 118 percent in October. RELATED: Oil prices rebounded after the “Black Friday” crash

Saudi Arabia, OPEC’s largest producer and de facto leader, saw the largest increase in production in November, in line with its target. So did Iraq, the second largest producer in the Organization of Petroleum Exporting Countries (OPEC), according to the survey.

Nigerian production was able to recover in November from force majeure in October, but other African producers continued to struggle for production to achieve their goals. Oil production in Angola, Gabon, and Equatorial Guinea has decreased or remained stable. A Reuters survey found that the biggest drop came from Angola, whose production fell by 50,000 barrels per day in November from October due to a lack of production capacity. Angola’s exports fell to a record low this month, according to tanker schedules seen by Reuters.

OPEC+ meets on Thursday to determine production levels for January, and a growing number of analysts believe the group may pause monthly supply additions amid an expected surplus early next year and still-high uncertainty over the impact of the Omicron Covid variable on oil demand.

By Tsvetana Paraskova for Oilprice.com

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