Global Oil Output Up 0.65% In December 2021

Global oil supply in December rose 0.65 million barrels per day (bpd) from the previous month to average 98.51 million bpd, marking a 5.58 million bpd year-on-year (y-o-y) increase, the Organization of the Petroleum Exporting Countries (OPEC) said on Tuesday.

The organization's monthly oil market report shows that OPEC crude oil production averaged 27.88 million bpd in December 2021, higher by 0.17 million bpd month-on-month (m-o-m). Crude oil output climbed mainly in Angola, Saudi Arabia, Iraq, and the United Arab Emirates (UAE), while production in Libya and Nigeria fell.

Production grew 85,000 bpd to nearly 1.16 million bpd in Angola, by 61,000 bpd to 9.93 million bpd in Saudi Arabia, and by 28,000 bpd in Iraq and UAE to 4.27 million bpd and 2.88, respectively.

Meanwhile, oil output in Libya dropped 84,000 bpd to 1.05 million bpd and in Nigeria by 43,000 bpd to around 1.33 million bpd.

The share of OPEC crude out of total global production remains unchanged at 28.3% in December compared to the previous month.

Non-OPEC liquids production, including OPEC natural gas liquids, grew by 0.48 million bpd in December compared with the previous month to average 70.63 million bpd, higher by 2.99 million bpd y-o-y.

"Preliminary December increases in production of 0.32 million bpd were driven by the OECD, mainly Norway and Canada, while output in the non-OECD was up by 0.12 million bpd, primarily driven by Brazil and Guyana," the report said.

Oil demand forecasts remain unchanged

OPEC kept its global oil demand forecast for 2022 unchanged from last month's assessment. Total world oil demand is anticipated to reach nearly 100.8 million bpd in 2022 with a growth of 4.15 million bpd.

"While the impact of the Omicron variant is projected to be mild and short-lived, uncertainties remain regarding new variants and renewed mobility restrictions, amid an otherwise steady global economic recovery," the agency said.

World oil demand growth in 2021 was also unchanged compared to last month at 5.7 million bpd to an average 96.6 million bpd.

According to the report, an upward revision in the fourth quarter of last year, amid better-than-anticipated transportation fuel consumption in the OECD, was offset by a downward revision in the third quarter given the latest actual data.

"During the same quarter, firm oil demand in China also led to slight upward revisions, while slower transportation fuel demand in India, amid heavy rainfall, called for downward revisions," the report said. -