OPEC and its partners estimate that they activated 99% of their oil supply bars in January, according to a representative who asked not to be named.
The 23-nation alliance called OPEC + aimed to keep 7.2 million barrels per day crude back from the market this month – about 7% of global supplies. They agreed to increase production by 500,000 barrels from December as part of a plan to reduce the cuts.
The compliance data is initial and will be reviewed on Tuesday by the group’s Joint Technical Committee.
OPEC + agreed to unprecedented supply restrictions in April last year after the coronavirus pandemic planes shut down economies and caused oil prices to fall. Brent Benchmark crude has almost tripled from its pool that month to $ 56 per barrel, although it is still below what most OPEC + countries need to balance their budgets.
No policy change
Performance in January was at 103% among members of the Petroleum Exporting Countries Group, and 93% for their non-OPEC partners, a group that includes Russia and Kazakhstan.
The JTC will present its assessment to the Joint Ministerial Audit Committee, which will meet Wednesday to discuss the federation’s strategy. The JMMC is unlikely to propose any policy changes, according to representatives who refused to be identified.
Saudi Arabia’s oil fears are well known: Julian Lee
Following the small increase in output in January, OPEC + has decided to keep production unchanged in February and March. However, Saudi Arabia, the most influential member of the group, promised a a one-sided cut of 1 million barrels per day over that period.
Iraq, the largest producer in OPEC + after Saudi Arabia and Russia, said it would reduce daily production to 3.6 million barrels in January and February to make up for breaking its quota last year. That would be a reduction of around 250,000 barrels per day from December.
OPEC + will hold a full ministerial meeting in early March to decide on the next steps.