OPEC+ November Output Falls Below The Target: Why?

The OPEC + oil production cut compliance rate rose from 116% to 117% in November. This indicates that the production level is still far below the agreed target.

The compliance rate of the 10 OPEC countries that participated in the production cut reached 122%, and the non-OPEC countries that participated in the production cut reached 107%.

The International Energy Agency (IEA) stated in its December oil market report that OPEC+’s production target last month was 650,000 barrels per day lower than October’s 730,000 barrels per day.

OPEC+ data shows that West African oil-producing countries Nigeria and Angola continue to work hard to achieve their goals. Angola’s compliance rate has reached the highest level this year, close to 300%. Due to the country’s slight increase in production, Nigeria’s compliance dropped by ten percentage points from the previous month to 239%.

In recent years, due to insufficient investment, persistent maintenance problems, and the outflow of international energy companies, the two countries have failed to achieve their target production.

Russia’s oil and gas condensate production was stable in December compared with November, the latter being excluded from trading.

Russian Deputy Prime Minister Alexander Novak stated that by May 2022, the country’s oil production would reach pre-pandemic levels.

Oil Price Update

Oil prices rose slightly on Tuesday. However, investors are still worried about the rapid spread of omicron coronavirus variants worldwide, prompting countries to consider more restrictive measures. It may weaken fuel demand.

At 0105 GMT, Brent crude oil futures rose 9 cents, or 0.1%, to $71.61 per barrel, while U.S. West Texas Intermediate (WTI) crude oil futures rose 23 cents, or 0.3%, To 68.84 US dollars per barrel.

Omicron infections have rapidly increased exponentially in Europe and the United States. The variant doubled every two to three days in London. It dealt a heavy blow to financial markets that worry about the impact on the global economic recovery.