With seven out of OPEC’s 14 countries pumping greater volumes compared to November, the bloc had a slight uptick in its collective output to 32.40 million b/d, an S&P Global Platts survey showed Monday.
December’s figure was a 50,000 b/d rise from November’s six-month low and is below OPEC’s notional ceiling of 32.74 million b/d, when every country’s quota under a production cut agreement that was recently extended through the end of 2018 is added up. Compliance among the 12 members with quotas under OPEC’s production cut agreement remained robust at 135% in December and 115% for the entirety of 2017, the survey found.
All 14 members will be subject to quotas starting this month, including formerly exempt members Libya and Nigeria, who were assigned a combined 2.8 million cap at OPEC’s November 30 meeting. The two countries would have exceed that cap in December, if it had been in place, with Libyan production rising to 980,000 b/d and Nigerian output rising to 1.90 million b/d, its highest since November 2015, according to survey records, for a combined 2.88 million b/d.
Nigeria, however, has disputed various calculations of its output by the independent secondary sources that OPEC uses to monitor production, including S&P Global Platts, saying they include condensate. A six-country OPEC/non-OPEC monitoring committee will meet January 21 in Oman to discuss compliance with the production cuts and review market conditions, with oil prices having risen recently to two-and-a-half-year highs on geopolitical risks and tightening supply.