Opec-Plus Unable to Reach Production Goals

Copyright © 2022 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

Opec-plus started 2022 with an unambiguous demonstration of its growing inability to meet production targets. In January, the 19 members with a quota managed to lift output by 140,000 barrels per day compared to December even though the alliance’s agreement currently calls for monthly additions of 400,000 b/d. Tellingly, the 37.82 million b/d of crude produced in January is 920,000 b/d short of the agreed target of 38.74 million b/d for the group of 19. This means that Opec-plus is more than two months behind its production schedule, a gap that is poised to grow as more members reach capacity constraints. The shortfall rattles markets that see supply falling short of rising demand.

Oil Supply, Crude Oil, Opec-Plus Supply
Crude prices trail product values by a historic distance but find strength in high spot premiums from a distorted short-haul market in Europe.
Tue, Jul 19, 2022
Opec-plus crude oil production surged by 1 million b/d in July, largely thanks to a recovery in the output of Kazakhstan, Nigeria, and Libya.
Thu, Aug 11, 2022