Report: OPEC Exceeded New Quota in January
OPEC produced nearly 19.7 million barrels a day of oil in January, more than 1 million barrels over the amount promised under the cartel’s new quota system, according to a report released Sunday.
The Petroleum Intelligence Weekly said its latest survey of world oil production showed that at least five members of the Organization of Petroleum Exporting Countries exceeded their quotas last month, pushing production beyond the 18.5 million barrels pledged at a meeting in November.
The new quota was to have taken effect Jan. 1 and extend for six months in an effort to stabilize world prices, which slumped to near 1986 lows last year because of a massive oversupply of oil.
The United Arab Emirates was said to be the biggest offender, but other major exporters also overproduced, including Saudi Arabia, Kuwait, Iran and Qatar, the survey found.
The UAE, whose quota was set at 988,000 barrels a day, produced about 1.5 million barrels, the report said.
Last year, OPEC production averaged 19.6 million barrels a day, it said, an 11% rise from 1987 and the highest level since 1982.
Between January and December 1988, OPEC production soared more than 5 million barrels, from 17.3 million to 22.7 million, while non-OPEC production remained flat, the survey showed.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
