ICYMI – reports Monday US time on OPEC oil supply dipping a touch in December. Info via Bloomberg (gated).
OPEC’s crude oil production declined in December, driven primarily by the UAE’s efforts to implement supply cuts aimed at stabilizing global oil markets.
Output fell by 120,000 barrels per day (bpd) to 27.05 million bpd, with modest increases in Libya and Nigeria offset by declines in Iran and Kuwait, according to a Bloomberg survey.
The background to this is that over recent years OPEC and its allies, led by Saudi Arabia, have limited production to support prices amid weak demand and abundant U.S. supplies. In their latest meeting, the coalition delayed plans to restore output.
While most members adhere to their quotas, data suggests the UAE has occasionally exceeded its limits.
In December, the UAE reduced oil exports to an 18-month low, reflecting efforts to align with OPEC’s goals. State-run Abu Dhabi National Oil Company (ADNOC) cut crude allocations for some Asian buyers in early 2025, and Abu Dhabi deferred a planned 300,000 bpd production increase from January to April.
Despite these measures, Bloomberg estimates that the UAE’s December output of 3.2 million bpd remained significantly above its agreed quota.
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Brent update:
Do candlestick folkj want to weigh in on that recent engulfing bar?
