OPEC oil output slips in December as Nigeria, Iraq comply more

News

How Zoom Rose To The Top During Social Distancing

Zoom has gained an incredible amount of popularity, but that popularity comes at a cost. The company is under intense scrutiny now that hundreds of millions of people are using the platform. But Zoom is in the game for the long haul, if it can surviv

Expo 2020: Dubai as a springboard for doing business in Africa

Dubai based Phanes Group is an end-to-end solar power provider operating across Africa, the Middle East, Central Asia and the Commonwealth of Independent States. CEO Martin Haupts says the Phanes Group is a truly Dubai home-grown company. CNBC Africa's Chris Bishop caught up with him in Dubai and asked how Dubai is serving as a springboard for the company and their work in Africa.

How prepared is Nigeria’s health system to tackle the COVID-19 pandemic?

President of the Nigerian Medical Association, Francis Faduyile says it will be pretty difficult for Nigeria's health system to cope in the event of a large number of COVID-19 infections. He further notes that low health budgets over the years has made Nigeria's health system weak. CNBC Africa's Christy Cole caught up with him to assess the preparedness of Nigeria's health system against the COVID-19 pandemic....
  • Saudi oil output edges lower
  • Nigeria cuts supply but still exceeds quota
  • Angolan output posts biggest rise after maintenance
  • Output by country, compliance:

By Alex Lawler

LONDON, Jan 6 (Reuters) – OPEC oil output fell in December as Nigeria and Iraq adhered more closely to pledged reductions and top exporter Saudi Arabia made further cuts ahead of a new production-limiting accord, a Reuters survey found.

On average, the 14-member Organization of the Petroleum Exporting Countries pumped 29.50 million barrels per day (bpd) last month, according to the survey. That is down 50,000 bpd from November’s revised figure.

Crude prices have rallied to above $70 a barrel in 2020, extending a 23% gain in 2019, supported by ongoing OPEC-led curbs and increased Middle East tensions after the killing of a top Iranian general. This has increased concern of conflict that could further cut supply.

“Looking ahead, geopolitical risks will remain front and centre of investor concerns,” said Stephen Brennock of oil broker PVM.

“A tense waiting game has begun to see if the fallout will lead to a disruption in regional oil supplies.”

OPEC, Russia and other allies, known as OPEC+, had an agreement to reduce supply by 1.2 million bpd in 2019. OPEC’s share of the cut was about 800,000 bpd, to be made by 11 members, with exemptions for Iran, Libya and Venezuela.

At meetings in December, OPEC+ agreed to make an additional cut of 500,000 bpd as of Jan. 1, 2020.

The 11 OPEC members bound by the agreement easily exceeded the pledged cuts, thanks in large part to Saudi Arabia and its Gulf allies cutting more than called for to support the market.

The December survey suggests Nigeria and Iraq, both laggards in making cuts in 2019, achieved some progress. Compliance rose to 158% in December, the survey found, from 153% in November.

NIGERIAN DROP

OPEC’s largest production drop of 80,000 bpd was in Nigeria, which exported less crude according to ship-tracking data and loading schedules.

Much of this decline came from reduced shipments of Bonga crude, which traders say has been undergoing maintenance.

OPEC’s two top producers, Saudi Arabia and Iraq, each reduced output by 50,000 bpd. This puts Saudi supply more than 500,000 bpd below its 2019 target. Iraq’s compliance, at 59%, is far lower than Saudi Arabia’s but is up from 23% in November.

The United Arab Emirates made a further voluntary curb in December, while Kuwaiti output was steady.

Among countries pumping more, the largest increase was in Angola, which boosted exports after maintenance affecting the Girassol crude stream had curbed supplies.

Venezuela, which is contending with U.S. sanctions imposed on state oil firm PDVSA and a long-term decline in output, managed a small boost to supply with exports increasing in December.

Production from the other two exempt producers Libya and Iran edged lower.

The Reuters survey aims to track supply to the market and is based on shipping data provided by external sources, Refinitiv Eikon flows data and information provided by sources at oil companies, OPEC and consultants.

(Additional reporting by Rania El Gamal; Editing by David Evans)

- Advertisement -
- Advertisement -

Featured

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Global Gender Summit: Highlights special of the 2019 Global Gender Summit

The 4th Global Gender Summit was organized by the African Development Bank and co-hosted by the government of Rwanda under the theme “Unpacking constraints to Gender Equality”. At the event, the African Development Bank and its partners officially launched the Risk Sharing Facility of the Affirmative Finance Action for Women In Africa, as the continent moves a step closer to bridging the financing gap that exists for women. CNBC Africa’s Kenneth Igbomor reports....

Op-Ed: Why the COVID-19 pandemic is no time for fiscal distancing

"Extraordinary times call for extraordinary measures. As such, it can no longer be business as usual".- Akinwumi Adesina, President of the African Development Bank

Can Cruise Lines Recover From Coronavirus?

The COVID-19 outbreak has laid waste to entire sectors of the global economy, but none faster than the cruise business. The pandemic has basically shut it down with the three largest publicly traded cruise companies suspending some, if not all, of th

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...
- Advertisement -

More Articles Like This

- Advertisement -