Iran, Venezuela compensate for OPEC+ oil production cuts

In November 2023, Iran and Venezuela increased oil production by 90,000 barrels per day.

Analysts from S&P Global Commodity Insights named the countries that compensated for the decline in production in OPEC+, the Vedomosti newspaper reports.

Iran and Venezuela, which are under US sanctions, are exempt from oil production quotas, and it is these countries that have become the main drivers of production growth, while the participants in the OPEC+ agreement in November began to supply 230 thousand barrels less of raw materials.

Thus, production in Iran increased by 50,000 barrels, and in Venezuela - by 40,000 barrels. Azerbaijan increased production by 10, and Gabon by 20,000 barrels per day.

At the end of November, OPEC+ participants agreed on a voluntary reduction in oil production for the first quarter of 2024. The reason given was the desire of leading suppliers to stabilize the situation on the global oil market and maintain an acceptable price level.

However, the actions of Iran and Venezuela reduced the effect of the OPEC+ decision, explained Finam FG analyst Nikolai Dudchenko. There is also no agreement between the organization's participants - Nigeria, Angola and the UAE do not agree with their quotas, and they intend to use the situation for their own benefit.

Over the past week, quotes have collapsed by about ten percent - prices were not supported either by statements by officials in Saudi Arabia and Russia, or by the urgent visit of Russian President Vladimir Putin to Riyadh and Abu Dhabi.

The decline in prices for raw materials was explained by the actions of American oil workers, who continue to increase oil production. Already in September, US producers set an absolute monthly production record for all countries.