Global oil production dropping as OPEC cuts kick in
Paris – The International Energy Agency says global oil output is dropping for the first time in months, as Saudi Arabia and other oil-producing countries follow through on pledged cuts aimed at lifting oil prices.
The IEA’s monthly report says Thursday that OPEC production dropped to 33.09 million barrels a day in December from 34.2 million the previous month. The first such drop in seven months, it’s attributed to lower Saudi output and disruptions in Nigeria.
The IEA says “a deeper OPEC reduction may be under way for January” as OPEC follows through on last year’s pledge to cut production and freeze it around 32.5 million barrels a day.
Production from nations outside OPEC also fell.
The Paris-based IEA says oil stocks are continuing to decline and demand remains high.