Opec’s production remained flat at 27.78mn b/d for November, and is on course for an annual decline of 670,000 b/d for the year as a whole. Within this, the 10 Opec members subject to production restrictions cut output last month by 60,000 b/d, while un-restricted Iran continued its steady production gains.
Production allocations remain unchanged for December, but from 1 January new restrictions come into force which mandate a significant drop from current levels. The Opec10’s cumulative Q1 production target of 22.33mn b/d is 420,000 b/d below their combined output last month. The new voluntary production levels for Q1 were agreed during the recent 30 November Opec+ ministerial meeting (MEES, 1 December). Participating countries Saudi Arabia, Algeria, Iraq, Kuwait and the UAE from Opec – have agreed that while the new the cuts are mandated only for Q1, they will not expire immediately, but will instead be gradually eased to avoid flooding the market (MEES, 8 December). With Saudi Arabia extending its 1mn b/d unilateral cut, these members pledged a combined reduction of 1.57mn b/d. (CONTINUED - 1009 WORDS)
