The Reuters poll aims to monitor oil supply to the market and based on shipping statistics provided by foreign sources, Refinito Aikan statistics, information from companies such as Petrolgestic and Kepler, and information from knowledgeable sources in oil companies, OPEC and consulting firms.
OPEC oil production rose for the sixth month in December, largely due to a further improvement in Libyan production, according to a Reuters poll finding.
A Reuters poll showed OPEC oil production reached 25.59 million barrels per day in December, 280,000 barrels per day higher than in November, and improved further compared to June’s production level, a record low of 30 years.
OPEC oil production will increase further in January under a deal approved at the December OPEC+ meeting to ease supply limits of 500,000 barrels per day.
Under an agreement approved tuesday this week on February production levels, production for most OPEC+ members will remain steady while Saudi Arabia voluntarily cuts production to a greater extent.
Referring to the first quarter of 2021, Commerzbank analyst Karsten Fritsch said: “Saudi Arabia’s production cuts are likely to prevent market supply saturation, which could have happened differently.
The biggest increase in production in December was related to Libya, which has been exempt from participating in the OPEC+ production cut deal, according to a Reuters poll. Libya’s oil production, which had been paralyzed for months due to internal unrest, has been rapidly revived since late September. Other OPEC members also increased their production in December, resulting in a reduction in the rate of adherence to the supply limit treaty from 102 percent in November to 99 percent in December.
Libya’s oil production has been rising after Libyan army commander Gen. Khalifa Haftar ended the blockade of oil fields and ports, rising by 150,000 barrels per day in December to 1.25 million barrels per day, a much faster-than-expected recovery from OPEC analysts and officials.
The UNITED ARAB EMIRATES increased its production by 70,000 barrels per day, the highest increase among countries involved in the supply restriction treaty. However, the country continued to produce oil below its quota. Production from Iraq, Nigeria and Angola also increased slightly.
Iran’s production, which is exempt from participation in the Production Reduction Treaty due to U.S. sanctions, increased slightly.
There was no significant reduction in production of other OPEC members. Venezuela, which is under U.S. sanctions and is struggling with long-term production cuts, faced a slight decline in production.
Production from Saudi Arabia, Kuwait and small producers such as Algeria, Congo and Gabon was steady.