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<p>As markets prepare for the first phase of the historic supply cut by oil producer club OPEC and its allies this Friday.</p>


COVID-19: How the global oil cuts deal impacts Nigeria


<p>Report by Tanvir Gill</p>



<p><strong>Key Points:</strong></p>



<ul><li>While a plunge in U.S. crude oil prices this week reverberated across global financial markets and fueled renewed worries over the beleaguered shale oil industry, billionaire investor Howard Marks told CNBC that the price action “is completely rational.”</li></ul>



<ul><li>Marks said the weakness in prices was steeped in fundamentals as energy demand has cratered due to the coronavirus pandemic and buyers are struggling to stockpile crude.</li></ul>



<ul><li>“Right now storage is scarce and thus expensive, so it’s not worth it to buy oil today and store it. The cost of storing exceeds the value today; thus the price is negative,” Marks said.</li></ul>



<p>A <a href="https://www.cnbcafrica.com/east-africa/2020/04/21/covid-19-what-the-oil-price-crash-means-for-african-economies/">plunge in U.S. crude oil prices</a> this week reverberated across global financial markets and fueled renewed worries over the beleaguered shale oil industry. Yet billionaire investor Howard Marks isn’t panicking.</p>



<p>Marks, who co-founded Oaktree Capital Management, told CNBC in an email interview that the <a href="https://www.cnbcafrica.com/videos/2020/04/21/how-the-oil-market-fall-impacts-angolas-economy/">weakness in crude oil prices</a> was steeped in fundamentals as energy demand has cratered due to the <a href="https://www.cnbcafrica.com/videos/2020/04/16/covid-19-pandemic-presents-an-opportunity-for-african-health-innovations-heres-why/">coronavirus pandemic</a> and buyers are scrambling to stockpile crude oil due to <a href="https://www.cnbcafrica.com/videos/2020/04/21/covid-19-global-oil-markets-collapse-due-to-oversupply/">storage space</a> becoming scarce.</p>



<p>“It’s not a panic. The move is completely rational,” Marks told CNBC in an emailed statement.</p>



<p> “The ultimate complication is that storing oil costs money, and storage facilities aren’t unlimited.  Right now storage is scarce and thus expensive, so it’s not worth it to buy oil today and store it.  The cost of storing exceeds the value today; thus the <a href="https://www.cnbcafrica.com/videos/2020/04/21/behind-the-oil-price-collapse/">price is negative</a>,” Marks said.</p>



<p>The comments from Marks come after West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel on Monday, which meant that traders were effectively having to pay to get oil taken off their hands. That marked the first time that the price of an oil futures contract had turned negative.</p>



<p>The May WTI contract, which expired on Tuesday, settled at $10.01 a barrel. Futures contracts trade by the month.&nbsp;</p>



<p>The June contract is currently trading around $11 per barrel. Meanwhile, international benchmark Brent crude stood at $17.01, nearly 12% lower.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="624" src="https://www.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-1110x624.jpg" alt="" class="wp-image-368766" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-1110x624.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-696x391.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120-1068x601.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/106469315-15857116313ED1-ASB-HowardMarks-033120.jpg 1910w" sizes="(max-width: 1110px) 100vw, 1110px" /></figure>



<p>The <a href="https://www.cnbcafrica.com/news/2020/04/15/poor-wealth-forecasts-for-south-africa-due-to-covid-19-sa-wealth-report/">coronavirus pandemic</a> has dealt a severe blow to economic activity around the globe and sapped demand for oil. While OPEC and its oil-producing allies finalized a historic agreement earlier this month to cut production by 9.7 million barrels per day beginning May 1, experts reckon that the reduction in supply won’t be enough to offset the diminution in demand.</p>



<p>The International Energy Agency, for instance, warned in its closely-watched monthly report, that demand in April could be 29 million barrels per day lower than a year ago, hitting a level last seen in 1995.</p>



<p>“Oil production can’t just be turned off, because for production some wells depend on pressure that a shut-off complicates. So, oil is coming out of the ground that exceeds the amount needed for consumption,” Marks said.</p>



<p>The gloominess in the oil market has also put the spotlight on US shale oil producers that are grappling with feeble demand on one hand and a lack of storage on the other, a conundrum that is making desperate oil companies “pay” traders for taking oil off them.</p>



<p>&nbsp;However, there are potential signs of relief. Some far-dated contracts this year are showing average oil prices of $20 a barrel and above while contracts expiring in 2021 are reflecting a modest bounce in demand taking prices to near $30 per barrel. Marks spotted a semblance of rationality in those prices.</p>



<p>&nbsp;“Oil can be bought for delivery by month. The negative price for oil reflects the excess of supply over demand, plus the cost of storage.&nbsp; The price for oil in future months (when consumption may have rebounded) is at more normal levels,” he said.</p>



<p><em>— CNBC’s </em>Sam Meredith, Pippa Stevens and Eustance Huang<em> contributed to this report.</em></p>



<p>This article was first published on CNBC <a href="https://www.cnbc.com/2020/04/22/billionaire-investor-howard-marks-calls-oil-crash-completely-rational.html">https://www.cnbc.com/2020/04/22/billionaire-investor-howard-marks-calls-oil-crash-completely-rational.html</a> and is republished with its permission.</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


A second wave of COVID-19 will have ‘major consequences’ for the oil market, IEA warns

Billionaire Howard Marks calls the global oil crash ‘completely rational’

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<p>Brent crude futures plummeted further and are currently hovering around $19 a barrel after falling about 10 per cent on increased concerns over a building supply glut and a lack of available storage. Kola Karim, Chairman of Shoreline Group joins CNBC Africa for more.</p>


COVID-19: Why there are no winners in the oil price crash

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<p>As Nigeria extends the lockdown for another 14 days, OPEC and Allies agreed to cut oil production by 9.7 million barrels from the first of May, through to the end of June.</p>


PwC Nigeria: How the COVID-19 lockdown extension

PwC Nigeria: How the COVID-19 lockdown extension, OPEC production cut impacts Nigeria

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<p>Saudi Arabia&#8217;s ministry of energy says its crude output topped 12 million barrels for the first time in history on Wednesday, a day after the output cut agreement by OPEC and its allies elapsed. Oil prices shed nearly 70 per cent in the first quarter of the year and uncertainties around the coronavirus pandemic is still weighing on prices. Joining CNBC Africa to discuss how the global oil dynamics impacts Nigeria, Oyeyemi Oke, an Oil &#038; Gas Lawyer and a Partner at A02 Law.</p>


How COVID-19

How COVID-19, oil price war impacts Nigeria

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<p>Developing countries could see their oil and gas income fall by between 50 percent and 85 per cent this year, that&#8217;s according to a joint statement by the International Energy Agency and OPEC.  The global organizations warned that the coronavirus pandemic could have potentially far-reaching economic and social consequences. Steve Osho, Managing Director at Comercio Partners Capital joins CNBC Africa for more.</p>


The impact of COVID-19

The impact of COVID-19, oil price war on developing countries


<p>ABUJA (Reuters) &#8211; Nigeria will postpone all non-critical government spending and wait for better market conditions for a planned $3.3 billion eurobond offering due to the turmoil caused by the coronavirus pandemic, the finance minister said on Monday.</p>



<p>Minister Zainab Ahmed told journalists in Abuja that Africa’s largest economy will prioritize “major capital expenditures.” </p>



<p>“Any expenditures that are not critical we must defer to do it at a later time when things become more normal,” she said. </p>



<p>An oil price crash caused by the toxic mix of a coronavirus-induced slump in demand and the collapse of a supply-cutting deal between OPEC and other oil producers such as Russia, has forced Nigeria to revise its budget and alter its spending plans. </p>



<p>The 10.59 trillion naira ($34.6 billion) budget included a benchmark of oil prices at $57 per barrel. On Monday, Brent crude slumped to roughly $30 per barrel. </p>



<p>Ahmed also said the virus-induced market turmoil would impact external borrowing, including for the eurobond it planned to issue to partly fund its 2020 budget deficit. </p>



<p>“We are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get the approvals we will defer it and watch the market and go out only when the timing is right.” </p>



<p>Borrowing costs for many riskier emerging markets have risen sharply in recent days, with all of Nigeria’s dollar-bonds now yielding between 12%-14% compared with yields of less than 3% on shorter-dated issues in mid-February. </p>



<p>Last month, the Debt Management Office said it expected to appoint advisers for the eurobond issue through an open competitive bid process and expected to complete an approval process for the sale swiftly. </p>



<p> ($1 = 306.0000 naira) </p>



<p>(Reporting by Camillus Eboh, additional reporting by Karin Strohecker in London, writing by Libby George, editing by Hugh Lawson)</p>



<p>This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKBN214196-OZABS">https://af.reuters.com/article/investingNews/idAFKBN214196-OZABS</a> and is republished with its permission.</p>


Nigeria to delay non-critical spending, defer Eurobond sale

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<p>Global central banks unveil bigger spending measures to counter the effects of the coronavirus outbreak – this comes as OPEC and the International Energy Agency warn that developing countries could lose up to 85 per cent of oil and gas income this year. Gbite Oduneye, Co-Founder of Eagle Global Markets joins CNBC Africa to breakdown the impact of the global pandemic on markets.</p>


Global markets continue slide on COVID-19

Global markets continue slide on COVID-19, oil price war


<p><strong>Key Points</strong></p>



<ul><li>IEA Executive Director Fatih Birol and OPEC Secretary General Mohammed Barkindo expressed “deep concerns” about the coronavirus pandemic on Monday.</li></ul>



<ul><li>They singled out public sector spending in vital areas such as health care and education as being especially vulnerable.</li></ul>



<ul><li>OPEC’s Barkindo and the IEA’s Birol did not address Russia specifically in their joint statement, but both “underscored the importance of market stability, as the impacts of extreme volatility are felt by producers.”</li></ul>



<p>Developing countries’ oil and gas income could fall to their lowest levels in more than two decades if current energy market conditions persist, the IEA and OPEC have warned in a rare joint statement. </p>



<p>IEA Executive Director Fatih Birol and OPEC Secretary General Mohammed Barkindo expressed “<a href="https://www.iea.org/news/iea-executive-director-and-opec-secretary-general-discussed-the-current-situation-in-global-oil-markets" target="_blank" rel="noreferrer noopener">deep concerns</a>” about the coronavirus pandemic on Monday, warning it could have “potentially far-reaching economic and social consequences.” </p>



<p>Birol and Barkindo said they expect developing countries to see their oil and gas income fall by 50% to 85% in 2020.</p>



<p>They singled out public sector spending in vital areas such as health care and education as being especially vulnerable. </p>



<p>International benchmark&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@LCO.1">Brent</a>&nbsp;crude traded at $29.91 Tuesday morning, down around 0.7%, while&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@CL.1">U.S. West Texas Intermediate</a>&nbsp;(WTI) stood at $28.98, more than 1% higher.</p>



<p>Oil prices <a href="https://www.cnbc.com/2020/03/16/oil-drops-more-than-6percent-breaking-below-30.html">slid 10% in the previous session</a>, as the coronavirus continues to spread worldwide and amid an ongoing price war between OPEC kingpin Saudi Arabia and non-OPEC leader Russia.</p>



<p>Crude futures have more than halved since climbing to a peak in January. </p>



<h2 class="wp-block-heading">‘Market stability’ </h2>



<p>On Monday, Saudi Arabia’s state-owned oil giant Saudi Aramco said it would likely continue with a planned oil production hike from April into May, reportedly suggesting it was “very comfortable” with an oil price of $30 a barrel. </p>



<p>Russia, which refused to sign up to OPEC’s proposal of deeper production cuts earlier this month, has claimed it can withstand lower oil prices for as long as a decade. </p>



<p>OPEC’s Barkindo and the IEA’s Birol did not address Russia specifically in their joint statement, but both “underscored the importance of market stability, as the impacts of extreme volatility are felt by producers.” </p>



<p>They agreed to “remain in close contact on the matter” and continue their regular consultations on oil market developments.</p>



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<p>The IEA, which advises industrialized nations on energy issues, has <a href="https://www.cnbc.com/2020/03/12/oil-the-losers-of-the-price-war-between-saudi-arabia-and-russia.html">previously warned</a> long-time allies of de facto OPEC leader Saudi Arabia could be the worst hit from a sharp drop in oil prices. </p>



<p>Last week, Birol <a href="https://www.cnbc.com/2020/03/12/oil-the-losers-of-the-price-war-between-saudi-arabia-and-russia.html">told CNBC</a> that countries like Iraq, Algeria and Nigeria — all OPEC producers — were in a “very, very difficult situation” and would require support from the rest of the world. </p>



<p>Iraq, OPEC’s second-largest producer, is thought to be particularly exposed to an all-out price war because it has one of the least diversified economies of the producer group — despite relatively low production costs.</p>



<p>(Report by Sam Meredith)</p>



<p>This article was first published on CNBC <a href="https://www.cnbc.com/2020/03/17/opec-iea-warn-some-nations-could-lose-up-to-85percent-of-oil-and-gas-income.html">https://www.cnbc.com/2020/03/17/opec-iea-warn-some-nations-could-lose-up-to-85percent-of-oil-and-gas-income.html</a> and is republished with its permission.</p>


OPEC and IEA warn developing countries could lose up to 85% of oil and gas income this year

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Global markets are in bear territory after oil prices crashed after OPEC’s failure to strike a deal with its allies on production cuts last week caused Saudi Arabia to slash the price of its crude exports. Muktar Mohammed, Analyst at Assar Investments joins CNBC Africa to discuss the impact on Nigeria&#8217;s equities market.</p>


NSE banking index down 8.9%: A wrap of Nigeria’s FX market

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Oil prices plunged over 26 per cent after a breakdown in talks in Vienna last week as OPEC failed to reach a deal with its allies on production cuts. In the face of an all-out price war, how can Africa&#8217;s oil producers like Nigeria stay ahead? Kola Karim, Chairman of Shoreline Group and Usoro Essien, Head of Research at Vetiva Capital joins CNBC Africa for more.</p>


Oil price crash: How can Africa’s oil producers stay ahead?


<p>

KEY POINTS</p>



<ul><li>Nigeria’s $34.6 billion Budget for 2020 was benchmarked on an oil price of $57 per barrel. It expected crude oil sales to contribute 35 percent of government revenue. The oil prices&#8217; plunge has forced the Nigerian government to review its budget.  </li></ul>



<p><br>By <a href="https://www.cnbc.com/pippa-stevens/">Pippa Stevens</a><a rel="noreferrer noopener" href="https://twitter.com/@PippaStevens13" target="_blank">@PIPPASTEVENS13</a><a href="https://www.cnbc.com/eustance-huang/">and Eustance Huang</a><a rel="noreferrer noopener" href="https://twitter.com/EustanceHuang" target="_blank">@EUSTANCEHUANG</a><br><br>Oil prices plunged after OPEC’s failure to strike a deal with its allies regarding production cuts caused Saudi Arabia to slash its prices as it reportedly gets set to ramp up production, leading to fears of an all-out price war.</p>



<p><a href="https://www.cnbc.com/quotes/?symbol=@CL.1">U.S. West Texas Intermediate crude</a>&nbsp;dropped 29.48% to $29.11 per barrel as of 05:50 GMT Monday, having earlier tumbled to a low of $27.34 per barrel. International benchmark&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=@LCO.1">Brent crude</a>&nbsp;futures also plummeted 27.26% to $32.93 per barrel.</p>



<p>“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” Again Capital’s John Kilduff said. “The Saudis are the lowest cost producer by far. There is a reckoning ahead for all other producers, especially those companies operating in the U.S shale patch.”</p>



<p>On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to a Reuters report. The kingdom currently pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day.<a></a></p>



<p>“We believe the OPEC and Russia oil price war unequivocally started this weekend when Saudi Arabia aggressively cut the relative price at which it sells its crude by the most in at least 20 years,” Goldman Sachs analyst&nbsp;Damien Courvalin said in a note to clients Sunday. “The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with the significant collapse in oil demand due to the coronavirus,” the firm added.</p>



<p>Goldman cut its second and third quarter Brent forecast to $30 per barrel, and said that prices could dip into the $20s.</p>



<p>Saudi Arabia’s price cut followed a breakdown of talks in Vienna last week. On Thursday, OPEC recommended additional production cuts of 1.5 million barrels per day starting in April and extending until the end of the year. But OPEC ally Russia rejected the additional cuts when the 14-member cartel and its allies, known as OPEC+, met on Friday.</p>



<p>The meeting also concluded with no directive about the production cuts that are currently in place but set to expire at the end of the month. This effectively means that nations will soon have free rein over how much they pump.</p>



<p>“As from 1 April we are starting to work without minding the quotas or reductions which were in place earlier,” Russian Energy Minister Alexander Novak told reporters Friday at the OPEC+ meeting in Vienna, adding, “but this does not mean that each country would not monitor and analyze market developments.”&nbsp;</p>



<p>Oil prices have already moved sharply lower this year as the coronavirus outbreak has led to softer demand for crude. A potential supply glut could pressure prices further.</p>



<p>“Both events – coronavirus and OPEC+ falling apart were not expected or priced into the market a month ago,” said Rebecca Babin, senior equity trader for CIBC Private Wealth Management. She said the key things to watch going forward are whether or not Saudi Arabia and Russia reach a “Hail Mary” deal, and if not, how quickly U.S. supply is shut in to support prices.</p>



<p>“There is still significant uncertainty, but the commodity market is not waiting around to find out if miracles can happen,” she added.</p>



<p>The unfolding of events is reminiscent of 2014 when Saudi Arabia, Russia and the U.S. competed for market share in the oil industry. As production escalated, prices plummeted. Some see prices heading back to those lows.&nbsp;</p>



<p>″$20 oil in 2020 is coming,” Ali Khedery, formerly Exxon’s senior Middle East advisor and now CEO of U.S.-based strategy firm Dragoman Ventures, wrote Sunday on Twitter. “Huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc &#8211; may prove existential 1-2 punch when paired with COVID19.”</p>



<p>But others, including Eurasia Group,&nbsp;believe that Saudi Arabia and Russia will eventually come to an agreement.&nbsp;</p>



<p>“The most likely outcome of the failure of the Vienna talks is a limited oil price war before the two sides agree on a new deal,” analysts led by&nbsp;Ayham Kamel said in a note to clients Sunday. The firm puts the chances of an eventual agreement at 60%.&nbsp;</p>



<p>Vital Knowledge founder&nbsp;Adam Crisafulli said Sunday that oil “has become a bigger problem for markets than the coronavirus,” but also said that he does not foresee prices falling to the Jan. 2016 lows.&nbsp;</p>



<p>“Saudi Arabia can’t tolerate an oil depression – the country’s fiscal breakeven oil prices remains very high, Saudi Aramco is now a public company, and MBS’s grip on power isn’t yet absolute. As a result, the [government] won’t be so cavalier in sending oil back into the $30s (or even lower),” he said in a note to clients Sunday.</p>



<p><em>— CNBC’s </em><a href="https://www.cnbc.com/michael-bloom/"><em>Michael Bloom</em></a><em> and </em><a href="https://www.cnbc.com/natasha-turak/"><em>Natasha Turak</em></a><em> contributed reporting.</em></p>



<p><em>This article first appeared on CNBC <a href="https://www.cnbc.com/2020/03/08/oil-plummets-30percent-as-opec-deal-failure-sparks-price-war-fears.html">https://www.cnbc.com/2020/03/08/oil-plummets-30percent-as-opec-deal-failure-sparks-price-war-fears.html</a> and is republished with its permission </em></p>


US crude prices drop below $30 a barrel after OPEC deal failure sparks price war, oil-dependent economies left vulnerable

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OPEC and allies will convene in Vienna for a two-day meeting that is crucial to the global oil market in the coming months. Kayode Akindele, Partner at TIA Capital joins CNBC Africa for more.</p>


OPEC & allies meet as coronavirus hits demand

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Ahead of OPEC’s meeting this week, oil prices rose by more than four per cent from multi-year lows earlier, as hopes of a deeper cut by the oil producing club and stimulus from Central Banks fuelled the rebound.  Rolake Akinkugbe-Filani, Managing Director of Energyinc Advisors joins CNBC Africa me for more.</p>


Oil prices decline to their lowest since 2018

Oil prices decline to their lowest since 2018, these are the main drivers behind the slide

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The International Energy Agency says oil demand is set to fall this quarter for the first time since the financial crisis in 2009 on the back of the coronavirus outbreak in China. Meanwhile, oil producer group, OPEC and its allies have agreed to cut output by 1.7 million barrels per day until the end of March this year to support the market. So how will these dynamics in the oil market impact Africa? Wale Olafisan, Group Managing Director of Amni International Petroleum Company joins CNBC Africa for more.</p>


Amni’s Wale Olafisan on the future of Africa’s oil and gas sector

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OPEC and non-OPEC’s Joint Technical Committee has scheduled a meeting on the 4th and 5th of February in Vienna to assess the impact of China’s new coronavirus on oil demand. As oil continues to trade below $60 a barrel, Kola Karim, Chairman of Shoreline Group joins CNBC Africa to discuss what this means for Nigeria’s economy.</p>


Here’s how Coronavirus outbreak impacts oil markets and Nigerian economy


<ul><li>Saudi oil output edges lower</li><li>Nigeria cuts supply but still exceeds quota</li><li>Angolan output posts biggest rise after maintenance</li><li>Output by country, compliance:</li></ul>



<p>By Alex Lawler</p>



<p>LONDON, Jan 6 (Reuters) &#8211; 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.</p>



<p>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&#8217;s revised figure.</p>



<p>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.</p>



<p>&#8220;Looking ahead, geopolitical risks will remain front and centre of investor concerns,&#8221; said Stephen Brennock of oil broker PVM.</p>



<p>&#8220;A tense waiting game has begun to see if the fallout will lead to a disruption in regional oil supplies.&#8221;</p>



<p>OPEC, Russia and other allies, known as OPEC+, had an agreement to reduce supply by 1.2 million bpd in 2019. OPEC&#8217;s share of the cut was about 800,000 bpd, to be made by 11 members, with exemptions for Iran, Libya and Venezuela.</p>



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



<p>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.</p>



<p>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.</p>



<p>NIGERIAN DROP</p>



<p>OPEC&#8217;s largest production drop of 80,000 bpd was in Nigeria, which exported less crude according to ship-tracking data and loading schedules.</p>



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



<p>OPEC&#8217;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&#8217;s compliance, at 59%, is far lower than Saudi Arabia&#8217;s but is up from 23% in November.</p>



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



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



<p>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.</p>



<p>Production from the other two exempt producers Libya and Iran edged lower.</p>



<p>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.</p>



<p>(Additional reporting by Rania El Gamal; Editing by David Evans)</p>


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