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OPEC Fails To Meet Crude Production Target Yet Again

Even with the OPEC+ deal's increased oil output in November, OPEC continued to pump less crude than its fraction of the monthly rise.

According to the monthly Reuters survey released on Tuesday, OPEC continuously increased its oil output in November as part of the OPEC+ accord, but the group continued to produce less crude than its fraction of the monthly rise.

Out of the total OPEC+ monthly supply boost of 400,000 barrels per day (bpd), the 10 OPEC nations bound by the OPEC+ contract should be increasing their combined production by 254,000 bpd per month.

OPEC's crude oil output grew by 220,000 bpd in November to 27.74 million bpd.

The increase fell short of the 254,000 bpd increase that OPEC should have implemented.

The Reuters poll confirmed a pattern that began a few months ago: not all OPEC countries can produce to their full mandates.

OPEC's latest Monthly Oil Market Report (MOMR) with data for October confirmed what analysts, tanker-tracking firms, and previous OPEC monthly reports had already concluded: the group has been undershooting its collective production quota—mostly due to a lack of capabilities at some members to pump crude to their corresponding quotas.

Based on Reuters survey, OPEC's compliance with the cutbacks increased to 120% in November, a slight increase from 118% in October, due to lower-than-target production.

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