OPEC sees drop in oil output in November amidst ongoing market cuts

Shafaq News / The latest figures from the Reuters survey depict a shift in oil output trends within OPEC, showcasing a decline in November, the first drop since July.

Despite increased production from Iran, the overall output slid due to reduced shipments from Nigeria and Iraq.

This dip aligns with ongoing market-supporting measures, including cuts from Saudi Arabia and other allies within OPEC+.

November's output for OPEC stood at 27.81 million barrels per day (bpd), marking a decrease of 90,000 bpd compared to October.

This comes after a continuous rise in production witnessed in the three months leading up to October.

Although OPEC has been curbing supply to bolster prices in collaboration with Russia and other partners since late 2022, there are plans for a further reduction in supply starting next year. OPEC+ recently agreed to implement new supply cuts for the first quarter of 2024, projecting a future decline in output.

Despite exemptions for certain OPEC members like Iran, which observed a significant surge in output reaching a five-year high, other members subject to the OPEC+ supply cuts witnessed a combined decrease of 130,000 bpd.

Key Gulf members, particularly Saudi Arabia, maintained strong compliance with these cutbacks alongside additional voluntary reductions.

Nigeria experienced the most substantial decline in November's output due to lower exports, while Iraq, the United Arab Emirates, and Angola also reported decreases.

However, despite Nigeria's export intentions, actual supply fell short, attributed to production recovery amid under-investment and unrest.

Saudi Arabia, with consistent output at around nine million bpd, continued its voluntary output cut by one million bpd to lend extra support to the market.

Conversely, Iran showcased the most notable surge in output, hitting 3.2 million bpd, the highest since 2018 despite US sanctions. Iran's increasing exports seemingly stem from their success in bypassing these sanctions.

While OPEC's output remains below the targeted levels by nearly 700,000 bpd, a review of 2024 output targets is anticipated to align actual output closer to the set goals.