OPEC oil output drops in December amid UAE, Iran cuts

OPEC Oil Production Declines in December Amid UAE, Iran Reductions

According to a recent research, following two months of growth, OPEC oil production declined in December. Lower production from Iran and the United Arab Emirates (UAE) as a result of field maintenance was the primary cause of the reduction. Nigeria and other member countries’ increased production counterbalanced the decline.

The total production of the Organization of the Petroleum Exporting Countries (OPEC) in December was 26.46 million barrels per day (bpd), which was 50,000 bpd less than in November. The biggest drop, from 90,000 bpd to 2.85 million bpd, was caused by the UAE. Field maintenance operations were blamed by sources for this decline.

Iran’s production also decreased by 70,000 bpd, reversing its 2023 trend of reaching its highest levels since 2018 despite ongoing U.S. sanctions. Analysts predict that stricter sanctions from the incoming U.S. administration may further curb Iran’s output.

Nigeria saw the biggest gain among the group, increasing output by 50,000 barrels per day, while Saudi Arabia and Iraq, the two largest producers in OPEC, continued to maintain steady production. Increased exports and increased domestic refinery utilization helped to support this increase. Libya also increased its production by 50,000 barrels per day as it continued to recover after the dispute over central bank control was resolved. Notably, OPEC+ production curbs do not apply to Libya.

OPEC+ members maintained their broad production curbs throughout December, due to concerns about rising supply from outside the group and global demand.. Plans for an output increase have been delayed until April by the alliance. External estimates indicate that some countries may still be generating beyond these levels, even while the UAE and Iraq are producing below their designated targets.

The supply and output trends were analyzed in this survey using a variety of sources, including information from oil businesses, industry experts, and OPEC insiders, as well as flow data from finance and tracking corporations.