Page 11 - AsianOil Week 48 2022

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OPEC output drops in November

after cut pledged

INVESTMENT 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
The cartel followed bers, after the wider OPEC+ alliance pledged its output policy and is not expected to make any
through with its plan. 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 vari-
710,000 bpd from October. In September, OPEC ations. 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
demand for oil recovered. For November, with next 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 flows
ber was 1.36 million bpd. data, information from tanker trackers such as
As a result of production being below target, Petro-Logistics, and information provided by
OPEC over-delivered on its pledged cuts with sources at oil companies, OPEC and consult-
a compliance rate of 163% in November, the ants. ™

Week 48 05•December•2022 www. NEWSBASE .com P11