OPEC: Iran's Oil Production Fell by 380,000 Barrels in November

The Organization of the Petroleum Exporting Countries (OPEC) reported in its latest monthly report that Iran's oil production fell by 380,000 barrels in November compared to the previous month. According to the report published on Wednesday, December 12, Iran's oil production has gradually decreased since the U.S. withdrawal from the JCPOA on May 8 of this year, but last month showed a significant decline. In November, Iran produced 2,954,000 barrels of oil per day, which is a decrease of about 864,000 barrels compared to before the U.S. left the JCPOA. OPEC states that Saudi Arabia and the United Arab Emirates compensated for Iran's significant production drop in November, with Saudi Arabia increasing its output by 377,000 barrels and the UAE by 71,000 barrels. Saudi production reached a record 11,016,000 barrels. However, OPEC's total production in November decreased by 11,000 barrels compared to October, as Venezuela's production continues to decline. This crisis-ridden country, which according to the International Monetary Fund is grappling with inflation exceeding 'one million percent,' has lost more than one million barrels of its production over the past two years. Last month, the U.S. enforced oil sanctions on Iran but exempted eight countries—China, India, South Korea, Japan, Taiwan, Turkey, Italy, and Greece—on the condition of a 'significant reduction' in their oil purchases from Iran. The U.S. is expected to extend these exemptions in five months in exchange for further reductions in oil purchases from these countries. OPEC states that the price of its oil basket fell by about 18 percent in November compared to October, reaching $65.33. The price of OPEC oil is currently below $60. Recently, OPEC and allied countries agreed to reduce their production by 1.2 million barrels starting January next year to raise prices, but oil prices have not changed significantly. Reports indicate that excess oil production, which is the main factor behind falling oil prices, will continue next year. OPEC states that the global demand for oil from the organization this year has been about 32.4 million barrels per day, which is a decrease of 1.1 million barrels compared to last year. For next year, the demand for OPEC oil is expected to drop by another one million barrels.