OPEC oil output falls as Nigerian rebound falters

LONDON - OPEC oil output fell in January, a Reuters survey found on Tuesday, as Iraqi exports declined and Nigerian output did not recover further while Gulf members maintained strong compliance with an OPEC+ deal on production cuts to support the market.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 28.87 million barrels per day (bpd), the survey found, down 50,000 bpd from December. In September, OPEC output hit its highest since 2020.

Output from OPEC and allies including Russia, known collectively as OPEC+, increased for most of 2022 as demand recovered. For November, with oil prices weakening, the group made its largest cut to production targets since the early days of the COVID-19 pandemic in 2020.

Its decision from November called for a 2 million bpd cut to the OPEC+ output target, of which about 1.27 million bpd was meant to come from the 10 participating OPEC countries. The same target currently applies.

With the decline in output this month, compliance with the agreement rose to 172% of pledged cuts, according to the survey, against 161% in December.

Output is significantly undershooting targeted amounts because many producers - notably Nigeria and Angola - lack the capacity to pump at the agreed levels.

The 10 OPEC members required to cut production pumped 920,000 bpd below the group's January target, the survey found. The shortfall in December was 780,000 bpd.