OPEC and its allies posted their highest monthly crude oil output increase in February since July 2021, but the 19 members with quotas still fell 764,000 b/d short of their collective targets, according to the latest S&P Global Commodity Insight survey.
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Register NowOPEC's 13 countries raised output by 480,000 b/d from January, pumping 28.67 million b/d of crude, while their nine non-OPEC partners, led by Russia, produced 14.07 million b/d, up 80,000 b/d, the survey found, with many members recovering from disruptions and technical problems.
More than a third of the total OPEC+ gains of 560,000 b/d came from the three members exempt from quotas under the deal: Iran, Libya and Venezuela.
In all, 14 members underproduced their targets, pinpointing the group's dwindling spare capacity. As a result, OPEC+ compliance in February climbed to 125.9%, the highest since the group instituted their pandemic-induced cuts in May 2020, according to S&P Global calculations.
This lofty compliance is being observed in an oil market starving for oil and reeling from the aftermath of Russia's invasion of Ukraine.
Crude prices have surged to 14-year highs in recent days, with some countries imposing bans on Russian oil imports and many companies self-imposing restrictions on trading Russian barrels for fear of financial liability.
OPEC+ kingpins
Saudi Arabia emerged as the group's largest producer in February, overtaking Russia for the first time since April 2020, the survey found.
The kingdom pumped 10.25 million b/d, just above its quota of 10.227 million b/d. Exports were up sharply last month, aided by sturdy global demand for its medium sour crude.
Saudi Arabia holds the majority of the world's spare capacity, and if Russian disruptions persist or worsen, the kingdom might be prodded into tapping into these barrels.
The CEO of state-owned Saudi Aramco, Nasser Amin, has acknowledged that the world had walked in to an "energy security crisis" and said the kingdom was working on bringing more sustainable production capacity in the long term.
Russian production rose 30,000 b/d to 10.11 million b/d last month, below its quota of 10.227 million b/d.
But demand for Russian crude has fallen significantly due to Western financial sanctions, as refiners are facing major difficulties securing shipping insurance, letters of credit, and tankers to load this oil.
Many oil companies and refiners are now refusing to do business with Russia.
Other significant gainers included Angola, which boosted its production to 1.18 million b/d, its highest since December 2020, according to the survey.
A slew of new startups including Eni's 20,000 b/d Ndungu, 15,000 b/d Cabaca North and 10,000 b/d Cuica projects, BP's 30,000 b/d Platina and TotalEnergies' 40,000 b/d Zinia Phase 2 projects, have helped its output recover from historic lows in 2021.
Gulf states the UAE and Kuwait also added more barrels, in line with their February allocations, producing 2.95 million b/d and 2.60 million b/d, respectively, the survey found.
Iraq kept its output stable in February at 4.26 million b/d, the survey found.
Exports from the southern oil terminals were up sharply as the country dipped into its inventories but maintenance at the key West Qurna 2 field along with protests at the Nassiriya oil field put a lid on its output.
Exempt members' recovery
The three members exempt from quotas added a cumulative total of 220,000 b/d to the oil market last month.
Libyan crude production recovered to 1.12 million b/d last month, a rise of 130,000 b/d after it suffered a series of blockades and some maintenance at its key oil infrastructure.
Libya's oil is very vulnerable to disruptions as the political divisions in the country have further escalated fowling the postponement of elections.
Venezuelan crude production rebounded to 680,000 b/d in February as it received much needed diluent from ally Iran. The Latin American country relies heavily on imports of Iran's South Pars condensate, which it uses to blend its extra-heavy crude.
Iran, also exempt from a quota while it is under US sanctions, saw its output rise to 2.56 million b/d, its highest in almost three years, according to the survey.
That came as Iran and the West inch closer to finalizing a nuclear deal that could eventually unlock some 1.5 million b/d of Iranian crude and condensate production.
Iran's pre-sanctions high was 3.83 million b/d in the first half of 2018, according to the survey.
The S&P Global OPEC+ survey, which measures wellhead production, is compiled using information from oil industry officials, traders and analysts, as well as reviewing proprietary satellite data on shipping and inventories.
OPEC+ February production
Unit: million b/d
Source: S&P Global Commodity Insights