Opec said on Wednesday that total output for the group fell by about 220,000 barrels per day (bpd) last month to 33 million bpd.
In its monthly report, the Vienna-based oil producers’ group said Saudi Arabia led the declines with a drop of about 150,000 bpd, while Nigeria’s output also fell by 113,000 bpd.
The group agreed at the end of November to cut output by a total of 1.2 million bpd starting this month, although Nigeria and Libya are exempted because their production had already suffered deep cuts because of internal conflict.
Saudi Arabia agreed to lead the group with a quota of just over 10 million bpd, which would be a cut of 486,000 bpd from its October level and more than 600,000 bpd from its record November level, according to “secondary sources”, which will be used as a reference by Opec.
Last week in Abu Dhabi, Saudi Arabia’s energy minister, Khalid Al Falih, said his country’s output had already been cut to below 10 million bpd, although there has been no independent confirmation.
The UAE and Kuwait have said they have already reduced output by at least 139,000 bpd and 131,000 bpd, respectively, although their output last month was up by 25,000 bpd at 3.2 million bpd (a record) and 2.8 million bpd, according to their own reports to Opec.
Oil traders are looking forward, however, to how Opec and the 11 countries outside Opec, which agreed to cut about 600,000 bpd, will try to maintain the credibility of their deal.
A monitoring committee for the deal will hold its first meeting next Monday in Vienna, jointly chaired by Kuwait and Russia, the leading producer in the non-Opec group, with Oman, Venezuela and Algeria, to agree terms of how to keep tabs on parties to the agreement to ensure they meet their commitments.
Oil prices have been volatile since the deal was agreed a month ago, with benchmark North Sea Brent crude futures trading up from the mid-US$40s per barrel in mid-November to a high above $58 earlier this month, before plunging back towards $53.
They were down $1.12 at $54.43 in late trading on Wednesday.
amcauley@thenational.ae
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