OPEC’s crude oil production for February rose on average by 150,000 barrels per day (bpd) more than the previous month of January.
A Reuters survey found yesterday (March 1) that OPEC’s February crude oil production rose to 28.97 million bpd but is still 700,000 bpd less than it was in September 2022. OPEC+ which is responsible for producing around 40 per cent of the world’s crude oil had cut its oil production targets, as demand took a tumble during the pandemic.
However, the oil cartel slowly raised its production targets last year as demand increased but consistently failed to meet its monthly production targets. In September last year, OPEC+ decided to begin cutting the group’s production targets, effective in October 2022.
The first cut was mild at just 100,000 bpd. This cut was considered mostly symbolic with the group at the time still under-producing by nearly three million bpd. However, with oil prices falling from US$120 Brent to less than $90 Brent by their October meeting, OPEC+ moved to tighten oil markets even further by making a drastic cut to its production targets by two million bpd, effective in November 2022.
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The group’s production targets have not changed since then. For the 10 OPEC members that are part of the wider OPEC+ agreement, February production was 880,000 bpd below its targets. This is closer to their target than they were in January when they produced 920,000 bpd less than their target.
For February, Nigeria was behind OPEC’s largest increase in production, with the African nation boosting production by 100,000 bpd, according to the Reuters survey. Iraq saw the second-largest increase in production.
Angola saw a drop in crude oil production in February of 80,000 bpd. The Reuters survey is based on shipping data, Petrologistics, and Kpler, along with information provided by OPEC and consultants, Reuters said.