OPEC’s January Crude Oil Production Rises

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The Organisation of Exporting Countries (OPEC’s) crude oil production increased by 160,000 barrels per day (bpd) January as the non-member countries called OPEC+ alliance is easing the output cuts the first month of the year, gathered at the weekend.

OPEC’s production is estimated average 25.75 bpd January, up by 160,000 bpd December, and the seventh month a row which the cartel has boosted its production, according the survey of OPEC sources, sources at oil firms, and tanker-tracking data.

Nigeria, however, saw the largest drop production January following a month-long force majeure exports of its largest export crude Qua Iboe. Exxon lifted the force majeure last week, according the monthly Reuters survey.

While most of the previous monthly gains in production were attributed to recovering output in Libya, which is exempted the OPEC+ cuts, and poor compliance of some OPEC members in the pact, the January increase in production is not surprising, considering that OPEC+ decided in December to add 500,000 bpd in January to production.The alliance is easing the cuts 7.7 bpd in December to 7.2 bpd in January.

Of the 500,000-bpd quota for the whole group, OPEC’s share of increased production is around 300,000 bpd.

Therefore, the biggest increases in January came OPEC’s number one and number two producers, and Iraq, as their share of quotas is higher, the Reuters survey found.

The third-biggest gain in OPEC production in January has come from , which, like Libya, is exempted from the OPEC+ cuts.

said earlier this month that had started ramping up its crude oil production eyeing a return to pre-sanction levels in a month or two.

The recovering production in Libya, however, has seen disruptions this month, and is producing slightly less in January compared to December, the survey found. A leak that forced the shutdown of an oil pipeline reduced Libyan oil production by as much as 200,000 bpd for a week, while the Facilities Guard briefly shut the Hariga oil port in eastern Libya after the Oil Corporation delayed the payment of for its members.