The Organisation of the Petroleum Exporting Countries (OPEC) has said its crude oil production dropped by 120,000 barrels per day (bpd) to 27.05 million bpd in December, according to a Bloomberg report.
The decline is a result of stricter supply reduction by the United Arab Emirates (UAE) to support global oil markets
In line with OPEC’s ongoing strategy to stabilise prices, the UAE reduced its crude exports to an 18-month low.
“The UAE’s actions reflect a push for greater discipline within OPEC,” Bloomberg reported, citing tanker tracking data.
The state-owned Abu Dhabi National Oil Company (ADNOC) further curtailed crude allocations for some Asian buyers in January and February, aligning its export strategy with the coalition’s production goals.
“As a gesture of commitment to the coalition’s goals, Abu Dhabi agreed when OPEC+ met last month to postpone an extra 300,000 bpd ramp-up it had been accorded in recognition of expanded production capacity,” the statement read.
The UAE’s decision delays the increase until April and spreads it over a longer period.
Despite this commitment, the UAE’s December production, estimated at 3.2 million bpd, remains several hundred thousand barrels above its agreed limit, according to Bloomberg estimates.
While modest gains in Nigeria and Libya offered some balance, reductions in Iran and Kuwait reinforced the overall decline.
OPEC’s efforts to maintain supply discipline come as the coalition led by Saudi Arabia continues to withhold crude output to defend prices against weak demand and growing American supplies.
Meanwhile, Nigeria remains focused on meeting its OPEC quota of 1.5 million bpd with ongoing efforts to ramp up production to about 2 million bpd.
The December output decline reflects OPEC’s commitment to navigating market volatility while addressing internal compliance challenges.
