Business News Asia
Oil production by oil-exporting countries (OPEC) fell in November. This was led by Saudi Arabia, a major oil exporter, and other Gulf countries after OPEC+ pledged to sharply cut production to support the market amid the deteriorating economic outlook.
OPEC and OPEC+ have mostly increased production in 2022 as demand picks up. However, oil prices plunged in November on recession fears. As a result, OPEC implemented the largest production cut since the COVID-19 expansion began in 2020.
OPEC+ will hold a conference call on Sunday (Dec. 4) to review production policy, and no changes are expected.
Saudi Arabia cut production by 500,000 barrels per day in November compared with October, almost the same figure as previously announced. It was followed by the United Arab Emirates and Kuwait, which made the largest production cuts.
Algeria cut production by about half the announced amount. And Iraq, OPEC’s second-largest oil producer, which had previously called for higher production quotas, cut its output slightly in November.
Nigeria recorded the largest increase in oil production. This was due to exports of Forcados crude oil.