The world's crude oil production fell by 1.2 million barrels per day (bpd) in February compared to the same month last year as steep output declines in Saudi Arabia and Iraq were partially offset by a large annual production gain in the United States, the latest data by the Joint Organizations Data Initiative (JODI) showed on Wednesday.
Compared to January 2024, global crude oil production jumped by 473,000 bpd in February as U.S. oil production rebounded following shut-ins due to bad weather in January, according to the JODI data shared by the Riyadh-based International Energy Forum (IEF).
Year-over-year, crude oil production in Saudi Arabia plunged by as much as 1.4 million bpd, the data showed.
The Kingdom has been implementing an extra voluntary cut of 1 million bpd since July 2023 to help the OPEC+ group's efforts to "stabilize the oil market."
Saudi Arabia's crude production rose by 55,000 bpd month-on-month in February-to a seven-month high of 9.01 million bpd, according to the JODI data.
The Saudis have pledged to keep their crude production at "about 9 million bpd" until the end of June 2024. So far, the Kingdom has been keeping its pledge and hasn't produced above its self-imposed quota under the OPEC+ deal.
Meanwhile, Saudi Arabia's crude oil exports rose by 20,000 bpd from January to 6.32 million bpd in February. This was a three-month high in Saudi exports, the data showed.
Another large annual production decline was registered in Iraq, where crude oil output fell by 347,000 bpd, per the JODI data which compiles self-reported figures from the individual countries.
The hefty output drops in the two largest producers in OPEC - Saudi Arabia and Iraq - were partially offset by a 744,000 bpd jump in U.S. crude oil production in February compared to the same month last year.
By Charles Kennedy for Oilprice.com
Charles is a writer for Oilprice.com More
Comments
In fact, the so-called Saudi voluntary production cut of 1.0 mbd which has been in place since June 2022 and has been extended until the end of 2024 is no cut at all. I nicknamed it the cut that was never was since Saudi Arabia couldn't produce it any way. The cut has virtually become a permanent one.
Meanwhile, Iraqi production also fell by 347,000 barrels a day (b/d) in February probably for maintenance work or due to continued halt of exports from the Kurkuk oilfield in Iraqi Kurdistan because of repair work on the Iraqi-Turkish pipeline (ITP) which is supposed to be completed by the end of this month.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert.