OPEC’s oil production declined in January after lower supply from Nigeria and Libya outweighed output increases from other members, including Venezuela, according to a Reuters survey released on Monday.
The survey found that OPEC pumped 28.34 million barrels per day in January, down 60,000 bpd from December, with Nigeria recording the largest drop.
The decline came despite higher production from some countries following political and operational changes, including increased Venezuelan output after the U.S. capture of Nicolas Maduro and the lifting of an oil blockade.
At the same time, OPEC+, which includes OPEC members and allies such as Russia, began a pause in its planned monthly output increases for the first quarter, citing concerns about a potential supply glut.
Production increases across the group have been limited because many members are operating close to capacity and some are required to make additional cuts to compensate for earlier overproduction.
Under an agreement covering January output, eight OPEC+ members committed to production targets.
Of these, five OPEC members, Algeria, Iraq, Kuwait, Saudi Arabia and the United Arab Emirates, were expected to keep output unchanged before accounting for compensation cuts totaling 130,000 bpd for Iraq and the UAE.
The survey showed these five countries raised output by 60,000 bpd compared with the previous month, but overall production still stayed below their agreed targets.
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Nigeria recorded the steepest decline in OPEC output, while Libyan production also fell after bad weather disrupted oil loadings.
Iranian crude supply declined further as the country remains under U.S. sanctions aimed at limiting its oil exports over its nuclear programme, with additional measures announced in January related to Tehran’s crackdown on protesters.
Among producers with higher output, Iraq increased exports from its southern terminals. Venezuelan crude production rose slightly, while exports climbed sharply.
Venezuelan output has now increased to close to 1 million bpd, Reuters reported on Monday, after earlier reporting that exports of crude and refined products rose to around 800,000 bpd in January.
The Reuters survey is based on flow data from financial group LSEG, information from other oil-tracking firms such as Kpler, and details provided by sources at oil companies, OPEC, and industry consultants.
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Image Credit: Business Day
