OPEC+ Sees Almost Full Compliance With January Oil-Supply Cuts –

Delegate says OPEC compliance at 103% and non-OPEC at 93% Group of major producers is curbing supplies to prop up prices

January 31, 2021 Stu Turley Crude Oil News, ENB Pub Note, Fossil, International News, OPEC +
OPEC -Energy News Beat

Energy News Beat Publishers Note: This is great news if they do hit the compliance numbers. My question is how do we know that the large volumes being shipped to China in unregistered tankers is within the compliance of OPEC + quotas – Just askin..

OPEC and its partners estimate they implemented 99% of their agreed oil-supply curbs in January, according to a delegate who asked not to be named.

The 23-nation alliance known as OPEC+ aimed to withhold 7.2 million barrels a day of crude from the market last month — about 7% of global supplies. They agreed to increase production by 500,000 barrels from December as part of a plan to ease the cuts.

The compliance data is preliminary and will be reviewed on Tuesday by the group’s Joint Technical Committee.

OPEC+ agreed to unprecedented supply restrictions last April after the coronavirus pandemic grounded planes, shut down economies and caused oil prices to crash. Benchmark Brent crude has almost tripled since its trough that month to $56 a barrel, though it’s still below what most OPEC+ nations need to balance their budgets.

 

No Policy Change

Implementation in January was at 103% among members of the Organization of Petroleum Exporting Countries, and 93% for their non-OPEC partners, a group that includes Russia and Kazakhstan.

The JTC will present its assessment to the Joint Ministerial Monitoring Committee, which meets on Wednesday to discuss the alliance’s strategy. The JMMC is unlikely to recommend any policy changes, according to delegates who declined to be identified.

Following the modest increase in January production, OPEC+ has decided to keep output unchanged in February and March. However, Saudi Arabia, the group’s most influential member, pledged a unilateral cut of 1 million barrels each day over that period.

Iraq, the biggest producer in OPEC+ after Saudi Arabia and Russia, said it would reduce its daily output to 3.6 million barrels in January and February to make up for breaching its quota last year. That would be a reduction of roughly 250,000 barrels a day from December.

OPEC+ will hold a full ministerial meeting in early March to decide its next steps.

Bloomberg

 

About Stu Turley 3344 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

Related Articles