OPEC members are reportedly sparring over production data as the group tries to implement a production freeze agreement.

According to Bloomberg, Iraq, Venezuela and Iran are disputing production data released by OPEC that they claim low balls their production levels.

The production figures would be used as a starting point to implement proposed production cuts.

Iraq was the first OPEC member to voice concern about the group’s published production data after an informal meeting in Algeria earlier this month.

OPEC releases monthly production data utilizing information submitted directly by group members as well as data collected from secondary sources.

Iraq directly reported a production level of 4.775 million barrels per day for September while OPEC said the country pumped 4.455 million bpd based on secondary sources.

Venezuela reported 2.334 million bpd of production for September while OPEC reported 2.089 million bpd in production based on secondary sources.

Iran did not directly report a production figure for September but OPEC said the country produced 3.665 million bpd based on secondary sources.

Iranian Oil Minister Bijan Namdar Zanganeh told Bloomberg that, despite disagreements over production data, he hopes OPEC members will agree on how to allocate the cuts during its next meeting.

OPEC hopes to finalize a production cut plan at its next official meeting on November 30.

The deal would mark the first production agreement since 2008.

The proposed plan aims to cut the group’s overall production level down to between 32.5 million to 33 million bpd from a record-breaking 33.39 million bpd in September.

Saudi Energy Minister Khalid al-Falih told Reuters earlier this month that Iran, Libya and Nigeria will be allowed to produce “at maximum levels that make sense” under the deal.

OPEC members also hope that other major producers, including Russia, will participate in the deal.

However, Rosneft chief Igor Sechin said last week that his company will likely not sign onto the deal.

“Why should we do it?,” Sechin told Reuters during the World Energy Conference in Istanbul.

The International Energy Agency said in its most recent monthly report that an OPEC deal could help the global oil market rebalance “faster.”


Leave a Reply