OPEC exceed agreed production level
CGES ANALYSTS | JANUARY 2012 | SOURCE: Global Oil Insight
December saw OPEC production climb to 30.94 mbpd, nearly 1 mbpd above the 30-mbpd level agreed upon when its ministers met in Dec-11.
The 80,000-bpd increase was to a large extent driven by rising Libyan crude production, which averaged 750,000 bpd last month.
Iraq’s capacity is also rising, albeit at a snail's pace; but, at 2.65 mbpd, output was still below last summer’s recent peaks and the shadow of escalating sectarian violence poses a threat to future gains.
The fall in Saudi Arabia’s output back below 10 mbpd may reflect an effort by the Kingdom to cater for rising Libyan production.
One major uncertainty is Iran’s production, for it seems to revel in its pariah status. An EU embargo would stretch global spare capacity and may explain the oil market's heightened anxiety of late.
Related articles: OPEC cuts production – but who will bear the burden?
OPEC finally bring oil production up to pre-Libya levels
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