Opec production fell by 800,000 b/d in November, considerably less than the group’s 1.27mn b/d share of the nominal 2mn b/d Opec+ cut agreed on 5 October, but broadly in line with expectations. The drop brought Opec production down to a four-month low of 28.97mn b/d.
The effective cut was always going to be far below the agreed amount given that so many Opec members were already significantly underproducing. The decision to cut was swiftly criticized by the US which accused Opec of siding with Russia to prop up oil prices (MEES, 7 October), but as markets have weakened further since October, Opec+ sees itself vindicated. (CONTINUED - 1000 WORDS)
