International transport: the Opep does not keep its production decline resolutions

Despite its decision to reduce crude oil production by two million barrels per day compared to September (cf.International transport: status quo on the Opep side), Opep (Organization of Petroleum Exporting Countries)finally increasedproduction in December, with an extraction of 29 million barrels per day,120,000 more than in November. It's atNigeria which is partly due to this increase. A member of the long-standing Opep (1971), this country, which has suffered from theft of crude oil in recent months, has resumed production, from 1.18 to 1.35 million barrels per day, with a target of 1.6 million barrels per day for the first quarter of 2023.

In Opep, only three countries had been allowed not to lower their production: Iran, Libya and Venezuela. However, some countries have not kept their commitments, such as Kuwait and the United Arab Emirates, which have maintained their quotas, or Saudi Arabia and Iraq, which have reduced them too little.

On the price side, the two black gold references (Brent of the North Sea and West Texas Intermediate) started the week upwards,driven by the announcement of China's exit from isolationAfter three years of restrictions (reopening of borders, including the one with Hong Kong, and ending of the mandatory quarantine for foreign travellers) but also by the weakness of the dollar, at the lowest in six months Monday. On Tuesday, prices fell below the 80 dollar mark (Brent Bar of the North Sea for delivery in March at USD 79.44 and WTI for delivery in February at USD 74.57), before jumping again on Wednesday. This Thursday morning, they had gained ground again with aUS$ 82.74 barrel for the Brentand$77.45 for WTI. 

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Source(s): Reuters | The New Factory

Editor(s): C. BEDOUIN