– The global oil output has fallen by 1.07 million barrels per day
– The supply cut deal by OPEC has led to successful results
– Combined output in January from all members is about 520,000 bpd
Global oil output falls by 1.07 million bpd in January
The supply cut deal by the Organisation of Petroleum Exporting Countries (OPEC), has been successful as the output of member states is set to fall by more than 1 million barrels per day (bpd) in January.
According to Reuters, the fall in supply shows the first supply cut deal in eight years is set to experience success.
OPEC and its members agreed to cut its output by about 1.2 million bpd from January 1 to prop up oil prices and reduce a supply glut.
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According to a survey, the supply from the 11 OPEC members with production targets under the deal has averaged 30.01 million bpd, down from 31.17 million bpd in December.
Nigeria and Libya are exempt from this supply cut because both countries have undergone output losses caused by conflict.
Also Iran, which was allowed to raise output under the OPEC deal because sanctions had crippled past supply, pumped an additional 20,000 bpd.
As far as January is concerned, combined output from all members is about 520,000 bpd above the target, adjusted to remove Indonesia, the survey showed.
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The reduction is good news for Nigeria, as an end seems in sight for the economic recession plaguing Nigeria for about two years.
It was earlier reported that oil might be about $60 in coming months.
Bloomberg reports that the minister of state for Petroleum Emmanuel Kachikwu, said that crude oil prices, hovering around $55 a barrel since early December, will climb by about $10 in the coming months as OPEC-led measures to curb a glut take hold.
360naze
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