According to a press agency survey report revealed on Thursday, the 31st of January, the OPEC oil supply had dropped in to two-year low, as Saudi Arabia and its crude producing gulf allies had curbed the crude oil production despite chance of losing market stake in a near-term outlook in order to balance the crude oil price and crude oils from Iran, Libya and Venezuela had not been reaching the refineries due to US sanctions.
The survey presented on Thursday, Jan. 31st, displayed that the Organization of Petroleum Exporting Countries (OPEC), comprised of 14 members, had pumped out 30.98 million barrels per day in January, which had been down by 8,90,000 barrel per day from December, 2018, posting its largest drop on a month-on-month basis since January, 2017.
The survey conducted by multiple Reuters’ analyst and economist suggested that the OPEC had just been a quarter down to its target output cut of 1.2 million barrels per day in an attempt to evade a market glut. The survey had not included the output cut of Russia-led oil producing nations and the group’s second largest producer, Iraq and some of its smaller members had pumped more than the agreed level.
However, an OPEC official had been quoted saying that he had been hoping for more members to pledge their loyalty on to the agreed output cut. He had also said, that, the drop in supply so far, had been acceptable, saying it a “good start. ”