• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 days The United States produced more crude oil than any nation, at any time.
  • 1 day Could Someone Give Me Insights on the Future of Renewable Energy?
  • 17 hours How Far Have We Really Gotten With Alternative Energy
  • 12 hours Bankruptcy in the Industry
IEA Cuts 2024 Oil Demand Growth Forecast

IEA Cuts 2024 Oil Demand Growth Forecast

Global oil demand growth is…

Energy Stocks Rally Under The Radar

Energy Stocks Rally Under The Radar

Big Oil is trumping the…

OPEC+ Faces Fork in the Road

OPEC+ Faces Fork in the Road

Some analysts have noted in…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Platts: OPEC+ Is Producing Less Crude Than It's Supposed To

Oil industry

OPEC+ is producing less oil than it is supposed to, a survey by Platts has revealed, as cited by Forex Live.

The oil cartel was supposed to pump a combined 37.141 million barrels in September per its quotas, according to Argus. Yet, according to the Platts survey, the actual total was 570,000 bpd below this number—even if it was higher than the previous month by more than the 400,000 bpd OPEC+ agreed to add to the market every month.

In other words, while OPEC+ was overperforming on its monthly production boost, it was underperforming on its own quotas.

The September total, per the Argus data, was 6.712 million barrels lower than the baseline production level agreed to by OPEC+.

The cartel has made no secret of its intention to go cautiously about production recovery. Its members appear still worried about the demand prospects for oil despite the recent price surge resulting from the gas supply crunch.

It was this worry about demand that made OPEC+ stick to its original output recovery scheme of adding 400,000 bpd to monthly production until combined output rises by 5.8 million bpd. That would still mean a lower output than before the pandemic—OPEC+ slashed 7.7 million bpd from its production to counter the pandemic—and could keep prices higher for longer.

In other words, OPEC+ is still prioritizing its own well-being despite calls for adding more barrels to curb a price rise that saw Brent crude top $80 per barrel and West Texas Intermediate pass this threshold for the first time in more than five years.

The most notable call to OPEC to pump more came from Washington earlier this year, not once but twice. Now, Reuters reports, the White House remains eager to have OPEC "do more" to help global economic recovery, according to an unnamed official.

The official said Washington was "using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets."

By Irina Slav for Oilprice.com


More Top Reads from Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Mamdouh Salameh on October 12 2021 said:
    Many factors enter into why OPEC+’s levels of production vary sometimes from month to month. These factors range from maintenance to inability to produce more by some of its members or even rising domestic consumption.

    Still, OPEC+ has two overriding objectives. One is to look after the interests of its members by trying to maximize their revenues and this means preventing oil prices from falling below $80 a barrel if possible since this is the price the majority of its members with the exception of Russia need to balance their budgets. The other objective is to balance the markets by preventing it dipping into either a glut or a deficit. Community

    That is why OPEC+ decided to stick to its original decision of adding 400,000 barrels a day (b/d) for November with continued rises in production until it has recouped the remaining 5.8 million barrels a day (mbd) from its total production cuts sometime in 2022.

    The market should make no mistake about OPEC+ determination to defend a Brent crude price of $80 but it will definitely intervene to prevent Brent surging far above $80.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

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