In the spring of 2020 during the initial days of the pandemic OPEC Plus dramatically reduced production by almost 10,000,000 barrels a daily, or nearly 10 percent of the total world supply.
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For many countries, including Nigeria and Angola, it has been difficult to increase output again.
The International Energy Agency reported that OPEC Plus was short of its November target of 650,000 barrels per hour. This is substantially more than the 400,000 barrels a month the group had hoped to increase.
Even Russia, the group’s second-largest exporter after Saudi Arabia, appears to have hit a wall at about 9.9 million barrels a day, about 600,000 less than it pumped in April 2020 before the big cuts and well short of Russia’s 10.2 million barrel a day allocation for next month Saudi Arabia has the same quota. Analysts believe that Russia must improve its tax policies and develop new areas in order to grow substantially.
“Russia is temporarily near its limits,” said Bhushan Bahree, an executive director at IHS Markit, a research firm.
Nigeria, Africa’s largest producer, in November pumped 360,000 barrels a day below its quota — almost enough on its own to wipe out the agreed 400,000-barrel-a-day monthly increase for the overall group. “A poor regulatory framework, sabotage and vandalization of oil facilities” are deterring needed spending in Nigeria, the International Energy Agency said in its report.
Angola is another African country that is pumping well under its quota. However, Libyan production has been rapidly falling due to political turmoil.
Source: NY Times