OPEC oil output fell in December after two months of gains as declines in the United Arab Emirates due to field maintenance and in Iran offset gains in Nigeria and other gains elsewhere in the group. The Organization of the Petroleum Exporting Countries pumped 26.46 million barrels per day last month, down 50,000 barrels per day from November, with the UAE recording the biggest drop, reported by Reuters.
The modest decline in output came as the broader OPEC+ group maintained output cuts in December amid concerns about global demand and rising output outside the group. OPEC+ decided last month to postpone its plan to increase output until April. The biggest drop in OPEC output, at 90,000 barrels per day, was in the UAE, the survey found.
Field maintenance
The drop was due to field maintenance, and the survey showed output at 2.85 million barrels per day. Output in Iran, which last year hit its highest level since 2018 despite US sanctions, fell by 70,000 barrels per day, the survey showed. That could soon be capped by tougher sanctions from the administration of incoming US President Donald Trump, Goldman Sachs and other analysts predict.
OPEC’s two biggest producers, Saudi Arabia and Iraq, held output steady, the survey said, while the group exceeded its target for the nine members covered by supply agreements. Nigeria exceeded its target by the largest amount. While the survey suggests the UAE and Iraq are pumping below their targets, and November data from OPEC secondary sources do not exceed them, other estimates, such as those from the International Energy Agency, suggest they are pumping significantly more.
Libya and Nigeria’s output
Among the countries increasing output, Nigeria increased output by 50,000 barrels per day, the survey showed, reflecting stronger domestic demand at refiners such as Dangote and higher exports. In December, Nigeria said it had restarted some operations at its Warri refinery after years of downtime.
Libya’s output also rose by 50,000 barrels per day, continuing its recovery after a dispute over control of the central bank that had led to production cuts. The country is exempt from OPEC+ agreements on production restrictions.