The unwinding of production cuts means that Opec’s production is set to rise 2.57mn b/d year-on-year for 2022, even after the return of cuts from November (MEES, 7 October). Output looks set to average just below 29mn b/d for the year as a whole, but could have been as much as 1mn b/d higher if members had been able to keep up with their allocations.
Certainly 2022 has been a mixed year for Opec producers. The group’s annual output will be around 2.7mn b/d below the 2016 peak of 31.66mn b/d. Yet Opec heavyweight Saudi Arabia is on course for 10.58mn b/d, which would smash its all-time high of 10.36mn b/d, set in 2016. Even the kingdom’s latest allocation of 10.478mn b/d only represents a 100,000 b/d drop from this incoming record. (CONTINUED - 779 WORDS)
