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Fundamentals

Opec-Plus Unable to Reach Production Goals

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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.

Topics:
Oil Supply, Crude Oil, Opec-Plus Supply
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