OPEC'S Oil Production Slips in December but Surpasses Target According to a Platts Survey

LONDON, January 12 /PRNewswire/ --

Platts The 10 OPEC members bound by the group's output agreements produced an average 27 million barrels per day (b/d) in December, down 70,000 b/d from November, but some 700,000 b/d above its current output target, a Platts survey showed Friday.

Including Iraq, which does not participate in OPEC's production agreements, the 11-member group produced 28.9 million b/d in December, 160,000 b/d less than November's 29.06 million b/d. Rough weather hit Iraqi exports in December.

The latest survey puts OPEC-10 production 700,000 b/d above the 26.3 million b/d production target agreed to at emergency talks in the Qatari capital Doha in October and which came into effect November 1.

That target is based on a 1.2 million b/d cut in physical production which OPEC said was from an estimated September production level of 27.5 million b/d. A previous Platts survey estimated OPEC's September output at 27.81 million b/d. OPEC did not list individual target output levels under the 26.3 million b/d, although it did give details of individual cut volumes.

Among the OPEC-10, only three countries reduced output in December, the survey showed. United Arab Emirates (UAE) production fell from 2.55 million b/d to 2.5 million b/d. Saudi Arabian output dipped 10,000 b/d to 8.79 million b/d, while Libyan production was also down 10,000 b/d at 1.7 million b/d.

OPEC's target output level is slated to fall to 25.8 million b/d on February 1 following the group's December 14 agreement in Abuja, Nigeria, to expand the Doha cut by 500,000 b/d to 1.7 million b/d.

"After a significant 660,000 b/d drop in production in November, it is apparent OPEC's output in December largely leveled off," John Kingston, global director of oil for Platts, said. "OPEC will need to achieve better compliance with its November 1 cut, and hope for solid compliance with the upcoming February 1 cut, as it seeks to stem a roughly 15% drop in crude prices since the start of this year."

    
    Country     December   November   October    September   Nov Cut Agreed
    Algeria       1.350     1.350      1.370       1.360         0.059
    Indonesia     0.860     0.860      0.860       0.860         0.039
    Iran          3.850     3.850      3.900       3.950         0.176
    Iraq          1.900     1.990      2.020       2.140           N/A
    Kuwait        2.460     2.460      2.530       2.540         0.100
    Libya         1.700     1.710      1.730       1.720         0.072
    Nigeria       2.230     2.230      2.300       2.300         0.100
    Qatar         0.800     0.800      0.830       0.830         0.035
    Saudi Arabia  8.790     8.800      9.070       9.100         0.380
    UAE           2.500     2.550      2.600       2.600         0.101
    Venezuela     2.460     2.460      2.540       2.550         0.138
    Total        28.900    29.060     29.750      29.950  
    OPEC-10      27.000    27.070     27.730      27.810         1.200

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