OPEC+ compliance with its supply agreement decreased slightly to 115% in September, Reuters reported, citing people familiar with the matter. Analysts said the compliance data showed while the group managed to raise their combined supply, some members struggled to hit production targets as they faced challenges in pumping more oil. OPEC+ members agreed to raise its collective production ceiling by 400,000 bpd each month in September and November.
The report said Angola and Nigeria struggled to hit their production quotas due to underinvestment and lack of maintenance, issues that are expected to continue stymying the West African producers in the near future. Last week, Saudi Arabia defended OPEC+ plan to cautiously raise production despite rising prices and a prospect of supply tightness due to increasing demand.
The International Energy Agency last week reported that OPEC+ spare production capacity could decline from 9 million bpd in the first quarter of 2021 to below 4 million bpd in the last quarter of 2022. The Paris-based agency noted that these spare capacities would mostly be concentrated in Middle East producers such as Saudi Arabia, Iraq, the UAE, and Kuwait.
