OPEC oil supply fell in December by the largest amount in almost two years, a Reuters survey found, as top exporter Saudi Arabia made an early start to a supply-limiting accord while Iran and Libya posted involuntary declines.
The 15-member Organization of the Petroleum Exporting Countries pumped 32.68 million barrels per day last month, the survey on Thursday found, down 460,000 bpd from November and the largest month-on-month drop since January 2017.
The survey suggests Saudi Arabia and some of its allies acted unilaterally to bolster the market as crude prices slid on the possibility of a new glut. A formal accord by OPEC and its allies to cut supply in 2019 took effect only on Tuesday.
Oil LCOc1 has slid to $56 a barrel from a four-year high of $86 in October on signs of excess supply.
While OPEC has not ruled out further action, officials hope prices will be supported by further output declines in January as producers implement the new deal.
“Naturally, it will adjust from now on,” said an OPEC delegate, referring to the downward trend in production. “I hope the market will recover soon.”
OPEC, Russia and other non-members, an alliance known as OPEC+, agreed in December to reduce supply by 1.2 million bpd in 2019.
OPEC’s share of that cut is 800,000 bpd.
The deal came just months after an accord to pump more oil, which in turn partially unwound a supply cut that took effect in 2017.
The drop in OPEC output in December is the largest month-on-month decline since January 2017, the first month of the earlier supply-cutting deal, according to Reuters surveys.
Latest Stories
-
Ensure debt sustainability framework remains fit-for-purpose to prevent unsustainable debt – Governor to IMF
3 minutes -
Bawumia donates GH¢3m to NPP for welfare support
11 minutes -
Accra High Court strikes out motion against anti-galamsey protest
27 minutes -
Ghana Armed Forces denies attack on Army Chief in Bawku
50 minutes -
CDD-Ghana launches International Desk to tackle global threats to African democracy
52 minutes -
We remain committed to paying remunerative cocoa price despite challenges – COCOBOD
57 minutes -
Minority health committee demands immediate restoration of services at Tamale Teaching Hospital
1 hour -
Parliament pays tribute to former Clerk, Mr. Samuel Ntim Darkwa, as final funeral rites are announced
2 hours -
Enimil Ashon: Why hide the Mike Ocquaye report?
2 hours -
Appolonia City begins work on Oyibi to Appolonia road to improve accessibility for surrounding communities
2 hours -
Madam Gladys Agyekum
2 hours -
Look beyond the money, we are providing essential services – Jospong Group to critics
2 hours -
Finance Minister outlines measures to tackle Ghana’s large payable build-up in 2024
3 hours -
Vatican Succession: Could an African Pope lead a Global Church?
3 hours -
Political parties rally nationwide protest over Chief Justice suspension on May 5
3 hours