OPEC Countries Cut Oil Output by 226,000 bpd within OPEC+ Deal in January

OPEC Countries Cut Oil Output by 226,000 bpd within OPEC+ Deal in January

TEHRAN (Tasnim) – OPEC countries (excluding Iran, Libya and Venezuela) participating in the OPEC+ agreement reduced oil production by 226,000 barrels per day in January 2024 to 21.368 million bpd mainly due to a slump in production in Algeria, Iraq and Kuwait, the organization said in a report.

New OPEC+ output targets have been in effect since 2024. Considering all changes, including the revision of quotas for Congo and Nigeria, as well as Angola’s withdrawal from OPEC, the adjusted quota for nine OPEC countries taking part in the OPEC+ deal totals 23.835 mln barrels per day.

In January, the volume of those countries’ real output equaled 21.368 mln barrels per day, which is 2.467 mln barrels per day lower than the level stipulated by the OPEC+ agreement, according to TASS. 

However, the parameters of the OPEC+ deal do not consider voluntary output cuts, which a number of OPEC+ nations stick to, including some OPEC countries as well. Those cuts total 1.66 million barrels per day. Moreover, Saudi Arabia additionally reduced oil production by another one million barrels per day from last July to the end of the first quarter of 2024, while Iraq, the United Arab Emirates (UAE), Kuwait and Algeria voluntarily cut output by a total of 572,000 barrels per day in Q1.

Nine out of 12 OPEC members take part in the OPEC+ agreement on crude output reduction as Iran, Libya and Venezuela have been allowed not to cut production.

In January 2024, oil output went up by 14,000 barrels per day to 796,000 barrels per day in Venezuela, down by 162,000 barrels per day to 1.015 million barrels per day in Libya, and down by 5,000 barrels per day to 3.163 million barrels per day in Iran.

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