OPEC output rises despite output target cuts

OPEC oil production rose in December, a Reuters poll found on Wednesday, despite a deal by the broader OPEC+ group to cut production targets and support the market.

The Organization of Petroleum Exporting Countries (OPEC) produced 29 million barrels per day (bpd) last month, according to the survey, an increase of 120,000 bpd from November. In September, OPEC production was the highest since 2020.

The December surge was led by a recovery in production in Nigeria, which has struggled for months with oil theft and insecurity in its oil-producing region.

Many Nigerian oil streams produced more in December, research sources say, with some companies citing improved safety.

OPEC+ ramped up production for most of 2022 as demand recovered. For November, with weakening oil prices, the group made its biggest cut in production targets since the early days of the Covid-19 pandemic in 2020.

Its November decision called for a 2 million bpd cut to the OPEC+ production target, of which around 1.27 million bpd was expected to come from the 10 OPEC member countries. The same target applied in December.

With Nigerian production recovering in December, compliance with the deal weakened slightly to 161% of promised cuts, according to the survey, from 163% in November.

Production is still below planned values ​​because many producers — mainly Nigeria and Angola — do not have the capacity to pump at agreed levels.

The 10 OPEC members forced to cut output pumped 780,000 bpd short of the group’s target for December, according to the survey. The deficit in November was 800,000 bpd.