OPEC’s oil output fell for the second month in January, dropping 50,000 bpd to 26.53 million. Nigeria’s production declined by 60,000 bpd due to reduced exports.
Nigeria and Iran led OPEC’s output drop in January, each losing 60,000 bpd. Iran, exempt from OPEC+ cuts, faces further declines as U.S. pressure mounts. Saudi Arabia and Iraq also saw slight drops, with Iraq working to meet its OPEC+ quota. The JMMC praised Iraq’s improved compliance.
The Joint Ministerial Monitoring Committee (JMMC) meeting on Monday proceeded as a routine session, with no recommendations for changes to the current OPEC+ strategy. Under the existing plan, the group is set to gradually ease production cuts beginning in April 2025.
While the JMMC monitors market conditions and compliance, it does not have the authority to decide production levels; such decisions are made during OPEC+ ministerial meetings.
At its last ministerial meeting in December, OPEC+ chose to postpone the start of unwinding the 2.2 million bpd production cuts from January 2025 to April 2025.
Additionally, the group extended the full phase-out of these cuts into the following year, setting a new target for completion by September 2026.
