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UAE: OPEC+ Struggles With Oil Production Hikes

By Tsvetana Paraskova

 

  • OPEC+ is currently pumping 2.6 million barrels per day below its target.
  • Since OPEC+ started reversing last year the record cuts from April 2020, the group has been consistently struggling to meet its production quota.
  • OPEC+ compliance to production cuts has now increased to more than 200%

The OPEC+ group is currently pumping 2.6 million barrels per day (bpd) of oil below its target, and efforts to boost output per the monthly plans are “not encouraging,” the energy minister of one of OPEC’s top producers, the United Arab Emirates, said on Wednesday.

“According to last month’s report, we have seen the conformity (to output cuts) of the OPEC+ group and the conformity was more than 200%,” the UAE’s Energy Minister Suhail al-Mazrouei said at an energy conference in Jordan as carried by Reuters.

Since OPEC+ started reversing last year the record cuts from April 2020, the group has been consistently struggling to meet its production quota as many members lack spare capacity or investment to increase production. The UAE is actually one of the very few with some spare capacity, as is OPEC’s top producer Saudi Arabia. The Saudis, OPEC’s second-largest producer, Iraq, and the third-largest, the UAE, are believed to be the only producers with enough spare capacity. OPEC’s African members Nigeria and Angola are struggling with their targets, while the leader of the non-OPEC producers in the pact, Russia, is trying to stop a production decline as its oil is now under sanctions, bans, and embargoes in the West.

 

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