According to a Bloomberg survey, crude oil production by the Organisation of Petroleum Exporting Countries (OPEC) remained stable last month. Ship-tracking data, official information, and estimates from consultants, including Kpler Ltd., Rapidan Energy Group, and Rystad Energy A/S, were considered for the survey.
In December, OPEC produced an average of 28.05 million barrels a day, maintaining supply restraints agreed earlier in the year. Nigeria notably increased its output by 50,000 bpd to 1.49 million a day, aligned with a revised quota negotiated for the year.
While Nigeria’s Upstream Petroleum Regulatory Commission (NUPRC) reported 1.25 million bpd in direct communication channels, OPEC’s secondary sources quoted 1.37 million bpd in November. Both NUPRC and OPEC are yet to release December output data.
However, Bloomberg anticipates a decline in output this month as OPEC+ implements additional cuts of around 900,000 barrels a day to prevent surplus and support crude prices amid a 20% slump in oil futures.
The United Arab Emirates made the most significant supply reduction in December, cutting by 70,000 bpd to 3.08 million bpd. Angola’s production declined by 40,000 bpd to 1.1 million bpd.
Angola announced its exit from OPEC effective January 1, ending 16 years of membership.
Despite the skepticism surrounding OPEC+’s ability to deliver on the supply curbs, the International Energy Agency estimates a cutback translating to around 500,000 barrels a day.
Goldman Sachs has projected that oil prices could double if Houthi rebels’ attacks on commercial shipping, which have occurred over 20 times since November, persist.
The head of the company’s oil research division, Daan Struyven, emphasized the potential impact of prolonged disruptions in the Red Sea or the Strait of Hormuz on oil prices, though he acknowledged such scenarios as “highly unlikely.”
Former Prime Minister and current Foreign Secretary David Cameron expressed concern over the attacks, stating, “This is not just a British interest, it is global.”
In summary, OPEC maintained stable crude oil production, Nigeria increased output, and market dynamics are influenced by concerns over geopolitical disruptions and OPEC+ supply curbs.
SOURCE: naija247news