Oil production in OPEC member states fell sharply last month

Oil production within the Organization of the Petroleum Exporting Countries (OPEC) fell sharply last month as Saudi Arabia significantly reduced its production to support the decline in the world's surplus commodity stocks. According to an analyst survey, OPEC's production fell by 920,000 barrels (1 barrel = 159 liters) per day in January, the largest reduction in eight months, to 24.87 million barrels per day. At the same time, the Arab kingdom kept its promise and reduced production by almost a million barrels a day, which is about 11%. OPEC, along with OPEC + allies, has been restricting oil supplies to markets since the outbreak of the pandemic, which pushed demand for oil almost a year ago. Saudi Arabia has pledged to further reduce production, in excess of its quotas, in February and March, in an effort to reduce the persistent surplus of oil reserves. Its efforts paid off and led to a recovery in oil prices back to pre-crisis levels, above $ 60 (€ 49.78) per barrel. The 23-member OPEC + alliance will meet on Thursday (March 4) to decide whether to ease any of the measures in April. They are generally expected to add half a million barrels per day to the agreement to reduce supplies to markets by 7 million barrels, and Riyadh will confirm the expiry of its additional mining limit of almost 1 million barrels. Russia, one of the leading producers in the alliance, has indicated that it is in favor of increasing production. However, Saudi Arabia remains cautious, noting that demand is still fragile and stocks are still high.