Output from OPEC+ to decline further - IEA

Economy Materials 16 February 2023 12:37 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, February 16. Oil production from all 23 OPEC+ countries dropped by 160,000 b/d to 44.29 mb/d in January 2023, Trend reports citing the latest oil market outlook from the International Energy Agency (IEA).

As the agency noted, this is mainly because of a decrease in output in the Middle East.

Meanwhile, OPEC countries decreased production by 40,000 b/d to 29.06 mb/d, while output from non-OPEC fell by 120,000 b/d to 15.23 mb/d.

According to the report, the production from the 19 members bound by quotas in the reporting period declined by 70,000 b/d to 38.18 mb/d, thus, increasing the gap between the actual supply and official targets to 1.9 mb/d, compared to 1.8 mb/d in December.

"Russia, because of sanctions, trails the farthest below quotas, while Nigeria, Angola and Malaysia are lagging due to capacity constraints and operational issues," the IEA noted.

So, the IEA anticipates further output decrease from OPEC+, led by Russia, as the EU price cap on Russia's crude entered into force on December 5, and then a cap on refined petroleum products was set on February 5.

Also, the output from Angola, Iraq and Kazakhstan is projected to decline due to maintenance, the IEA added.