Page 7 - MEOG Week 48 2022

MEOG PRICES & PERFORMANCE MEOG

OPEC output drops in

November after cut pledged

OPEC OPEC oil output has fallen in November, led by survey found.
top exporter Saudi Arabia and other Gulf mem- OPEC+ meets virtually on Sunday to review
bers, after the wider OPEC+ alliance pledged its output policy and is not expected to make any
steep output cuts to support the market amid a changes this time round.
worsening economic outlook, a Reuters survey
found last week. Saudi leads the way
OPEC pumped 29.01 million barrels per Looking beyond the headline figures the details
day (bpd) this month, the survey found, down of each country’s output show significant varia-
710,000 bpd from October. In September, OPEC tions. In November, Saudi Arabia has cut out-
output had been the highest since 2020. put by 500,000 bpd versus October, the survey
OPEC and its allies, known as OPEC+, found, virtually all of the pledged amount. The
have been boosting output for most of 2022 as United Arab Emirates and Kuwait made the next
demand for oil recovered. For November, with largest curbs.
oil prices weakening amid concern of recession, Algeria cut about half of the pledged amount
the group made its largest cut since the early days and Iraq, OPEC’s second-largest producer which
of the COVID-19 pandemic in 2020. has been calling for its quota to be increased,
Their decision for November called for a 2 barely lowered output in November, according
million bpd cut in the OPEC+ output target, to the survey.
of which about 1.27 million bpd was meant to Angola and Nigeria each boosted output in
come from the 10 participating OPEC countries. November but both are pumping far below their
Output has been undershooting targeted quotas, the survey found. Nigeria posted OPEC’s
amounts as many producers - notably Angola largest increase, helped by higher exports of
and Nigeria - lack the capacity to pump more Forcados crude.
due to insufficient investment and, in the case of There was little change in production in
Nigeria, crude theft. Libya, Iran and Venezuela, all of which are
Output from the 10 members fell by 720,000 exempt from OPEC output cuts.
bpd month-on-month, the survey found, leaving The Reuters survey aims to track supply to
actual production 800,000 bpd below the group’s the market. It is based on shipping data pro-
November output target. The shortfall in Octo- vided by external sources, Refinitiv Eikon
ber was 1.36 million bpd. flows data, information from tanker trackers
As a result of production being below target, such as Petro-Logistics, and information pro-
OPEC over-delivered on its pledged cuts with vided by sources at oil companies, OPEC and
a compliance rate of 163% in November, the consultants.™

POLICY & SECURITY

Iranian oil ministry opens office in Iraq

IRAN/IRAQ THE Ministry of Petroleum of Iran has of oil, gas, and energy”.
announced it has opened a new office in the Iraqi Beheshti also said that this office in Baghdad
capital Baghdad, Mehr News Agency reported is in charge of the other offices in other parts
on November 30. of Iraq, adding that the ministry will also have
Iran has a growing influence on its smaller offices in Basra and the Kurdistan Region as well.
Arab neighbou, with several major firms now Iraq has not commented on the move by
operating a presence out of Baghdad and the the Iranian government, but it comes a day
semi-autonomous Kurdistan Regional Govern- after Iraqi officials visited the Iranian capital on
ment region in the country’s north. high-profile meetings.
Seyyed Abbas Beheshti, the representative of Iranian Minister of Petroleum Javad Owji
the Iranian Petroleum Ministry for Iraqi affairs, stated that Iraq has also now paid €1.6bn in
said that “this office was opened in Baghdad in arrears for gas exports to Tehran, on the same
order to enhance the level of cooperation and day. In total, he mentioned that Iraq has paid in
synergy, especially to carry out joint projects excess of €2.6bn in payments for gas exports to
between the two brotherly countries in the fields the country to date.™

Week 48 30•November•2022 www. NEWSBASE .com P7