• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 20 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 12 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Energy Armageddon
  • 6 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 7 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 7 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 21 hours Wind droughts
  • 8 days Goldman Betting on Cryptocurrencies
  • 11 days Сryptocurrency predictions
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

IEA Pleas With OPEC+ For More Oil Supply, Again

  • For the second time in one week, IEA Director Birol has asked OPEC+ to raise production.
  • OPEC and OPEC+ have not been pumping as much as the OPEC+ pact calls for.
  • If OPEC+ continues to fail in delivering its oil production targets amid rising demand and inventories at multi-year lows, oil prices will remain under upward pressure.

For a second time this week, Fatih Birol, the executive director of the International Energy Agency (IEA), called on the OPEC+ group on Wednesday to narrow the widening gap between its production quotas and the much lower actual supply to the market.

"It will be important for OPEC+ to narrow this gap and hopefully provide more volumes to the market," Birol said at an energy conference in Riyadh today, as quoted by Reuters.

OPEC and OPEC+ have not been pumping as much as the OPEC+ pact calls for, essentially tightening the market and distorting analyst assumptions about market balances.

For half a year now, OPEC+ has actually added lower volumes to the market each month than the 400,000 bpd nominal monthly increase announced in each of the OPEC+ meetings since August 2021.

Estimates in the International Energy Agency's monthly oil market report for February showed that the gap between OPEC+ production and its target levels surged to as much as 900,000 bpd in January.

Figures from OPEC itself showed last week that the cartel raised its crude oil production by just 64,000 bpd in January 2022, well below the 254,000-bpd increase in output allowed under the OPEC+ deal. According to the secondary sources that OPEC uses to track its members' production, even top producer Saudi Arabia failed to deliver its 110,000-bpd monthly increase. The Kingdom raised its oil production in January by 54,000 bpd to 9.999 million, below its 10.122 billion bpd quota for January per the OPEC+ deal. However, Saudi Arabia self-reported production of 10.145 million for January, up by 123,000 bpd from December.

The plea from the IEA's head Birol on Wednesday comes two days after he said at a Cairo event that OPEC+ producers need to pump more oil to close the gap between nameplate production quotas and actual output.

If OPEC+ continues to fail in delivering its oil production targets amid rising demand and inventories at multi-year lows, oil prices will remain under upward pressure and are set for more volatility, the IEA said in its monthly report published last week.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News