Libya resumed it full oil production after a break that lasted for several months since the beginning of 2020.
OPEC said production increased by 278,000 b/d in December 2020, as several member states, led by Libya and Iraq, increased their output.
The organization stated in its monthly report that its oil production increased to 25.362 million b/d during December 2020, compared to 25.083 million b/d in November.
A UN sponsored agreement
Last October, Libya’s warring parties (Government of National Accord and the Libyan National Army) reached a permanent ceasefire agreement between the, at the United Nations headquarters in Geneva.
The Libyan agreement contributed to the stability of the security situation and the recovery of state sectors, most notably the energy sector.
OPEC said seven countries increased their production over the past month. Libya increased its oil production by 136,000 b/d.
Libya now produces 1,224 million b/d. This led to an increase in OPEC’s production at the end of last year.
The country is one of the member states exempt from commitment to production quotas.
OPEC+’s members agreed to reduce their production to maintain prices, especially Russia and Kazakhstan.
However, Minister of Energy of Kazakhstan said Russia and Kazakhstan will be allowed to increase their production together by 75,000 b/d in February and March.
Russia and Kazakhstan sought to increase the group’s production by 500,000 b/d in February. Others state members refused such increase.
Iraq and the UAE increased their crude oil production by 76,000 and 63,000 p/d, respectively.
Equatorial Guinea production increased by 24,000 b/d, Iran increased its production by 20,000, and Venezuela by 17,000.
On the other hand, six countries reduced their production last December, most notably Nigeria, by 28,000 b/d, and Angola and the Congo by 14,000 barrels each.
The Saudi cut
The Kingdom of Saudi Arabia had announced its intention to voluntarily implement additional cuts in its oil production, amounting to one million p/d for the next two months, in light of its fear of the repercussions of the outbreak of Coronavirus.
Saudi production remained largely stable during December at 8.964 million b/d.
Closures and the suspension of air transport have affected global oil demand during the year 2020.
Oil production decreased by nearly 9.8 million b/d.
OPEC forecasts that demand will increase by 5.9 million b/d this year.