OPEC’s oil production dropped for the second consecutive month in January, driven by lower output from Iran and Nigeria, according to a Reuters survey released on Wednesday.
In January, the combined output of all 12 OPEC members fell by 50,000 barrels per day (bpd) to 26.53 million bpd, compared to December. The survey, which is based on data from oil-tracking companies, OPEC sources, and industry consultants, revealed that both Iran and Nigeria saw significant reductions in their production.
Iran, which is exempt from the ongoing OPEC+ production cuts, saw its output decrease by 60,000 bpd. Analysts expect further declines, especially after former U.S. President Donald Trump reinstated the “maximum pressure” campaign to reduce Iran’s oil exports to zero.
Nigeria also faced a 60,000 bpd drop in its production as it cut back on exports.
Saudi Arabia, OPEC’s largest producer, experienced a small decline in output in January, while Iraq, the second-largest producer, also saw a slight reduction. Iraq, however, has been producing above its OPEC+ quota and will need to compensate for this in the coming year.
The Joint Ministerial Monitoring Committee (JMMC), which oversees compliance with the OPEC+ agreement, commended Iraq this week for improving its adherence to production cuts.
At its meeting on Monday, the JMMC did not recommend any changes to OPEC+ plans. The current schedule calls for a gradual reduction of production cuts starting in April 2025.
OPEC+ had previously decided in December to delay easing the 2.2 million bpd cuts until April 2025, pushing back the start of the adjustments from January 2025. The group also extended the timeline for fully unwinding the cuts to September 2026.
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