OPEC oil output rose in December before new cuts, Angola exit

Daba Finance/OPEC December oil output rises

AFRICAN BUSINESS AND ECONOMYJanuary 10, 2024 at 10:16 PM UTC

TLDR

OPEC's oil output increased in December, driven by Iraq, Angola, and Nigeria, countering Saudi Arabia's production cuts.
Despite the increase, OPEC's output is still lower compared to the same month last year.
Future cuts are expected in 2024 as part of the OPEC+ agreement, and Angola's exit from OPEC will further reduce output and market share.

According to a Reuters survey conducted in December, OPEC's oil output increased during the month. The rise was attributed to production increases in Iraq, Angola, and Nigeria, which offset the ongoing production cuts by Saudi Arabia and other members of the broader OPEC+ alliance aimed at stabilizing the market.

In December, the Organization of the Petroleum Exporting Countries (OPEC) produced 27.88 million barrels per day (bpd), reflecting a 70,000 bpd increase compared to November. However, it is worth noting that this output is still over 1 million bpd lower than the levels observed in the same month the previous year.

Looking ahead, further cuts are expected in 2024 as part of the OPEC+ agreement. Additionally, Angola's exit from OPEC is anticipated to contribute to a reduction in January output and market share. OPEC's overall market share has been declining due to output restraint measures and the departure of certain member countries.

Key Takeaways

In December, the largest increases in oil production, totaling 60,000 barrels per day (bpd), were reported in Iraq and Angola, according to the Reuters survey. Both countries augmented their exports during the month. Additionally, Nigeria saw an increase in crude oil shipments without yet commencing oil products output at its newly established Dangote refinery. The Reuters survey, designed to monitor supply to the market, relies on shipping data from external sources, Refinitiv Eikon flows data, information from companies tracking flows such as Petro-Logistics and Kpler, as well as insights provided by sources at oil companies, OPEC, and consultants. This comprehensive approach aims to provide a comprehensive and accurate representation of oil production and supply trends in the market.

OPEC

Oil Production

Nigeria

Angola

Oil Exports