OPEC barely increased production last month amid chronic struggles OPEC News

Oil prices jumped to a seven-year high above $ 90 a barrel last month, raising expectations of a return to three-digit levels.

from Bloomberg

OPEC countries barely increased production last month amid chronic member struggles and renewed unrest in Libya, again illustrating the group’s inability to calm a thriving market.

The Organization of the Petroleum Exporting Countries and its partners are expected to seal the resurgence of more suspended supplies when they meet online on Wednesday. But a Bloomberg study found that they fought hard in December, in part because of reduced investment.

Oil prices rose to a seven-year high of $ 90 a barrel last month, raising expectations of a return to three-digit levels as supplies from OPEC + and other countries failed to cope with the vigorous recovery in pandemic demand. The rally fanned a wave of inflation that frustrated central banks and caused a cost crisis for millions.

OPEC’s 13 members increased production by just 50,000 barrels a day in December as the group’s slight gains were erased by a 140,000-barrel-a-day drop in Libya, according to the study. They pump a total of 28.14 million barrels a day. The North African nation was hit by a blockade of its western fields by militias, which forced the closure of its largest reservoir, the Sharara.

The 10 OPEC countries participating in an agreement with non-member countries, such as Russia, increased by 160,000 barrels a day, about two-thirds of the target.

The full coalition of 23 OPEC + countries is expected to give the green light for the return of 400,000 barrels per day in March, although this is also accompanied by technical difficulties. His compliance with the cuts was 122% in December, according to data presented to an internal committee on Tuesday.

Widespread difficulties in resuming supplies are increasingly burdening the Gulf countries: Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. But that, in turn, has led traders to worry about the spare capacity they have to cover any disruptions, whether deeper losses in Libya or another attack such as last month’s drone strike in Abu Dhabi.

The figures are based on ship tracking data, information from officials and estimates from consultants, including Rystad Energy AS and JBC Energy GmbH.

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