The OPEC crude production climbed in January to the highest level in Bloomberg data going back 20 years as Indonesia’s membership was reactivated.
The Organization of Petroleum Exporting Countries boosted output by 48,000 barrels to 33.113mn barrels per day (bpd) in January 2016, according to a Bloomberg survey of oil companies, producers and analysts.
The total includes 815,000 barrels from Indonesia, which contributed for the first time since its membership was restored from January 1 following a seven-year suspension.
OPEC set aside its output target of 30mn bpd at its December 4 meeting in Vienna, which ended in deadlock over Iran insisting it would pump even harder in its post-sanctions era.
Saudi Arabia, OPEC’s top producer, reduced output by 50,000 bpd to 10.2mn bpd in January, amid sluggish demand from Chinese refiners. Saudi Aramco, has higher official selling prices, or OSPs, than some competitors, also curbing demand for its crude.
Iranian output rose by 60,000 bpd to 2.86mn bpd. Iran’s Oil Ministry gave directions to increase output by 500,000 barrels a day after international sanctions were lifted this month.
Nigeria’s production increased 109,000 bpd to 2.028mn bpd, the highest level in a year. It was the biggest gain in the survey.
Nigerian output is volatile because of unrest and theft in the Niger River delta, the main oil- producing region.
Indonesia, the only net-importer in the group, increased its production this month by 22,000 barrels from December’s 793,000 bpd.
Saudi Arabia, the world’s largest crude exporter, has led the group in fighting for market share against higher-cost producers such as shale drillers in the US Crude futures have been volatile this week amid mixed cues about the likelihood of a coordinated production cut by OPEC and other producers.
“It looks like everyone is going flat out,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts told Bloomberg. “This suggests nobody is positioning themselves to make cuts. An agreement to cooperate in curbing supply to support prices isn’t looking likely.”
