OPEC+ output slips as Saudi reins in production - survey

Quantum Commodity Intelligence - OPEC+ production dropped in January, primarily due to lower Mideast Gulf supplies and a slight decline in Russian output, according to a survey published by Argus Media, one of the producer group's official data suppliers.

Overall production slipped by 250,000 bpd to 38.06 million bpd, which was still more than 2 million bpd below the group's combined quotas.

Production by non-OPEC members fell by 110,000 bpd thanks to lower supplies from Bahrain, Malaysia and Russia, while OPEC output was 140,000 bpd lower as Saudi output fell by 220,000 bpd, under pressure from a drop in exports and a maintenance-driven decline in refinery throughputs, said Argus.

The reported drop in Saudi output was significantly above other surveys from S&P Global and Bloomberg reporting cuts of 60,000-110,000 bpd.  

Iraqi production also eased after bad weather hit Basrah loadings and outages curbed runs at several refineries in the country.

These falls were partly offset by a rebound in Nigerian output, which increased for a fourth consecutive month to 1.38 million bpd. But a further recovery in Bonny Light looks to have stalled, possibly because of the shutdown of one of the grade's supply pipelines.  

Nigeria was still producing 360,000 bpd below quota in January despite the monthly increase, while Angola fell 310,000 bpd short.  

After meeting on Wednesday, the OPEC+ Joint Ministerial Monitoring Committee (JMMC) recommended no changes to the producer alliance's current production policy.

The decision was widely anticipated after crude oil prices recovered during January following a sluggish start to 2023.

Meanwhile, the UAE's energy minister said on Monday there is no need for the OPEC+ group of oil producer nations to meet earlier than scheduled, with the next full ministerial meeting planned for 4 June.

"I do not see a requirement for a meeting, the market is balanced," said Suhail al-Mazrouei.