Crude oil production by members of the Organization of the Petroleum Exporting Countries (OPEC) fell by 100,000 barrels per day (bpd) in December as supply declines from Iran and Venezuela outweighed a planned output increase under the OPEC+ agreement.
According to a Reuters survey, total OPEC output averaged 28.40 million bpd in December, down from November’s revised level.
Iran recorded the largest reduction in supply during the month, reflecting the impact of U.S. sanctions aimed at restricting Tehran’s oil exports. Venezuelan output also declined, further dragging on the group’s overall production levels.
The drop came despite an agreement by OPEC+ to raise production for December.
Under the deal, five OPEC members, Algeria, Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates, were scheduled to collectively increase output by 85,000 bpd.
However, the survey showed the actual increase was limited to about 20,000 bpd, as compensation cuts and capacity constraints reduced the net impact.
OPEC+ has slowed the pace of its monthly supply increases amid concerns about a potential oversupply in the global oil market. Several members are producing close to capacity, while others are required to make additional cuts to offset earlier overproduction, limiting the effectiveness of agreed output hikes.
Iranian crude production fell by about 100,000 bpd in December, according to the survey. Output and exports remain volatile as sanctions enforcement fluctuates and shipping patterns vary month to month.
Venezuela’s crude supply declined by an estimated 70,000 bpd, amid tighter U.S. measures aimed at curbing oil shipments. Analysts expect the impact of these restrictions to intensify in the current month.
Consultancy Energy Aspects said it did not observe a significant production change in Venezuela for most of December but expects crude and condensate output to decline to around 950,000 bpd in January from approximately 1.1 million bpd in December.
Export data shows Venezuelan crude and residual fuel shipments fell sharply month-on-month, with excess volumes moving into onshore and floating storage.
Output levels in Iraq and the United Arab Emirates were broadly stable, though estimates vary widely among data providers. While OPEC’s secondary sources and the Reuters survey suggest production is largely in line with quotas, other assessments, including those by the International Energy Agency, indicate higher actual output.
Overall, the December figures underscore the continued influence of sanctions and operational constraints on OPEC supply, complicating the group’s efforts to carefully manage production and balance the global oil market.
