In a recent survey, it was discovered that OPEC’s oil output in February has increased, driven by a resurgence in Libyan production following disruptions. Despite voluntary cuts by some members in alignment with the OPEC+ alliance, Libya’s output surge offset these reductions.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 26.42 million barrels per day (bpd) this month, marking a 90,000 bpd increase from January. Notably, Libyan output experienced a significant month-on-month rise of 150,000 bpd due to the restart of the Sharara oilfield, one of the nation’s largest facilities.
While several OPEC+ members implemented fresh cuts in January to address economic challenges and external supply growth, the decision to extend these measures beyond the first quarter is pending. Some OPEC nations voluntarily reduced output in April 2023 and November 2023, with Saudi Arabia making an additional cut.
Despite falling short of its targeted cuts in February by 190,000 bpd, largely due to overproduction by Iraq, Nigeria, and Gabon, OPEC maintained efforts to manage supply levels. Notably, Gulf producers such as Saudi Arabia, Kuwait, and the United Arab Emirates adhered to slightly lower output targets, while Algeria also exhibited restraint. Iraq reduced production by 30,000 bpd in February despite exceeding its target.
In contrast, Iran curtailed exports further, operating near a five-year output peak achieved in November despite enduring U.S. sanctions. Nigeria recorded the second-largest output gain of 60,000 bpd, driven by processing activities at the new Dangote refinery and increased exports surpassing the country’s 2024 target by 100,000 bpd.
The survey, designed to monitor market supply levels, relies on shipping data from external sources, LSEG flows data, insights from flow-tracking companies like Petro-Logistics and Kpler, and information provided by sources within oil firms, OPEC, and consulting agencies.