Edition: Global  
One News Page
“Probably the fastest-access news portal in the world”
> >

Here Is OPEC Production Cut Table, And It Has An "Error"

Zero Hedge Wednesday, 30 November 2016
Here Is OPEC Production Cut Table, And It Has An ErrorShortly after the conclusion of today's Vienna meeting, OPEC released the following table which lays out the breakdown of what the current reference production level is by nation, as well as the proposed adjustment to get to a 1.2 million barrel per day reduction, as well as the "pro forma" production number that will be effective on January 2017.

Two quick observations.

As noted previously, Indonesia is no longer in OPEC after it "suspended" its membership, effectively giving it full right to pump as much as it wants relative to its most recent October baseline production level of 722K per the OPEC monthly book. The reason for Indonesia's departure, according to the Nigeria oil minister, is that it was "unable to contribute a large enough cut."

More notably, Iran was in such a rush to declare victory and state that it is the only nation to be allowed to boost production that someone forgot to check the math in the table, because the 90,000 upward adjustment appears to be an error: *the country's Reference Production level of 3,975tb/d is actually well higher than the January production level of 3,797tb/d. *However, for political and optical purposes, it was meant to give Iran a domestic "victory" over the Saudis, by giving Iran leeway to announce it was the only nation to be allowed to boost production in the face of Saudi opposition, when in reality it appears to have been a math glitch.

However, even more notable is that if one compares the OPEC production level per the "deal" relative to January output, is that total production appears to be higher by over 800,000 barrels. Keep in mind that both Libya and Nigeria are set to boost production higher, potentially to 1mmb/d and 2mm/d respectively, and expanding total OPEC production back over 33mmbpd in just a few months. This happens at a time of modest seasonal production reduction by the Saudis and modest cuts by other members, while the exempt nations are ramping up.

One wonders how long until the market does this math and realizes that basically the strategy since February was to jawbone prices higher, ramp up throughout and then adjust to seasonal levels in January 2017 and call it a cut?
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 
Source: Bloomberg Global Business - < > Embed

News video: OPEC Remains Split as Production Cut Decision Looms

OPEC Remains Split as Production Cut Decision Looms 02:12

Nov.29 -- Monica Malik, chief economist at Abu Dhabi Commercial Bank, discusses the possibility of an OPEC deal on Wednesday in Vienna. She speaks to Desley Humphrey and Angie Lau on "Bloomberg Markets: Middle East."

Recent related news

OPEC’s Latest Report Signals An Oil Price Rally

Today’s OPEC report is a clear sign of a sustainable bear market, with the cartel’s oil production falling slightly in August, while its demand forecast for...
OilPrice.com - Markets

Has The EIA Been Overestimating Oil Production?

The Energy Information Administration is overestimating U.S. crude oil production, Continental Resource’s chief executive Harold Hamm said today in an...
OilPrice.com - Markets

OPEC Production Falls Despite A Dip In Compliance

All data below is based on the latest OPEC Monthly Oil Market Report. All data is through August 2017 and is in thousand barrels per day. (Click to enlarge)The...
OilPrice.com - Markets


You Might Like


Other recent news in Markets

YELLEN Admits The Fed is Dependent on Stock Price Levels When Determining Rate Hikes, Inflation is a MysteryProsecutors Unveil Full Details Of ANTHONY WEINER's Pedophilia
GOOGLE SIGNS $1.1bn deal with struggling HTCUpdates on EQUIFAX BREACH Frustrate Consumers
Mauldin: Americans Don't Grasp The MAGNITUDE Of The Looming Pension TsunamiPilatus Bank PLC: At the 10th anniversary of the IPHONE, Chairman of Pilatus Bank draws a stark comparison of the role technology has played in banking vs telecommunication
ProtectMyPeople - A New Group LIFE INSURANCE Comparison Site - Launches for UK Small and Medium Business Owners5 Things You Should Know About the 'Big D' and Why You Need to Share this on WORLDALZHEIMERSDAY
Following in Fitbit's Footsteps, Apple Shares Fall on Lackluster Apple WATCH SERIES 3 ReviewsHaving a New VOLVO XC40 Will be as Hassle Free as Having a Mobile Phone

Twitter

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+