In the spring of 2020, in the early days of the pandemic, OPEC Plus sharply cut production by nearly 10 million barrels per day, or nearly 10% of global supply at the time.
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Rebuilding production has not been easy for several countries, including Nigeria and Angola.
In its monthly oil report for December, the International Energy Agency estimated that OPEC Plus fell short of its November target of 650,000 barrels per day, well above the 400,000 barrels per day. day that the group had planned to increase each month.
Even Russia, the group’s second largest exporter after Saudi Arabia, seems to have hit a wall at around 9.9 million barrels per day, around 600,000 less than it was pumping in April 2020 before the big cuts and well. below Russia’s 10.2 million barrels per day. allocation for next month, Saudi Arabia has the same quota. For Russia to grow significantly from here will require improved fiscal policies and the development of new areas, analysts say.
“Russia is temporarily close to its limits,” said Bhushan Bahree, executive director of IHS Markit, a research company.
Nigeria, Africa’s biggest producer, pumped 360,000 barrels per day below its quota in November – almost enough on its own to wipe out the agreed monthly increase of 400,000 barrels per day for the whole of the group. “Poor regulatory framework, sabotage and vandalism of oil installations” are discouraging needed spending in Nigeria, the International Energy Agency said in its report.
Angola, another African country, is also pumping well below its quota, while Libyan production has recently fallen rapidly due to political unrest.