SHARE

OPEC production reportedly fell in January but those declines were still shy of the group’s production cut target.

According to data compiled by Bloomberg, OPEC output fell by 840,000 barrels per day to 32.3 million bpd in January.

The ten OPEC members that agreed to participate in the production cuts were, on average, able implement 83 percent of the targeted reductions, Bloomberg said.

However, production gains from Iran, Nigeria and Libya offset some of those cuts.

According to Bloomberg, those three countries added a combined 270,000 bpd in January.

Under the OPEC plan, Iran, Nigeria and Libya are all exempt from cutting production.

When adjusted for the production gains and Indonesia’s recent suspension of its OPEC membership, Bloomberg found that the group was still producing about 550,000 bpd above its target.

Saudi Arabia saw its output fall below 10 million bpd in January after cutting 500,000 bpd in production.

That reduction marked the first time since late 2014 that Saudi Arabia’s production has fallen below the 10 million bpd mark.

Iraq’s production fell by an estimated by 120,000 bpd to just over 4.5 million bpd last month while the United Arab Emirates and Kuwait cut a combined 310,000 bpd, Bloomberg found.

OPEC members agreed late last year to trim production by 1.2 million bpd to help bolster global oil prices.

Eleven non-OPEC producers, including Russia, agreed in December to cut production by about 558,000 bpd.

Both production agreements will be in place for an initial six-month period and were effective at the start of the year.

OPEC production began falling in December ahead of the production plan’s official start date.

According to S&P Global Platts, total OPEC production sank by 280,000 bpd to in 32.85 million bpd in December after hitting a record high the previous month.

That production decline was the first dip that OPEC had recorded in seven months.