ICYMI – reports Monday US time on OPEC oil supply cuts in December. Info via Bloomberg (closed).

OPEC crude output fell in December, driven primarily by the UAE’s efforts to implement supply cuts aimed at stabilizing global oil markets.

Output fell by 120,000 barrels per day (bpd) to 27.05 million bpd, with modest increases in Libya and Nigeria offset by declines in Iran and Kuwait, according to a Bloomberg survey.

The background to this is that in recent years, OPEC and its allies, led by Saudi Arabia, have limited production to support prices amid weak demand and abundant supplies from the US. At its last meeting, the coalition delayed plans to resume production.

Although most members adhere to their quotas, data suggests that the UAE has occasionally exceeded its limits. In December, the UAE cut oil exports to an 18-month low, reflecting efforts to match OPEC targets. State-owned Abu Dhabi National Oil Company (ADNOC) cut oil allocations to some Asian buyers in early 2025, and Abu Dhabi delayed a planned production increase of 300,000 barrels per day from January to April. Despite these measures, Bloomberg estimates that the UAE’s December output of 3.2 million barrels per day remained well above the agreed quota.

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