Mubasher: Oil production from the Organization of Petroleum Exporting Countries (OPEC) declined in December 2018, before the producer club officially began a new round of output curbs.

Crude supplies from the 14-nation producer group slid by 751,000 barrels per day (bpd) to around 31.578 million bpd last December, according to independent figures cited by OPEC.

A decline from Saudi Arabia, OPEC’s de-facto leader, was the catalyst behind the headline drop.

The major oil exporter’s supply fell 468,000 bpd to nearly above 10.55 million bpd last month, figures said, while data came directly from Riyadh showed a 450,000 bpd plunge to slightly above 10.6 million.

The decline in OPEC production was further deepened by supply shortages from Iran and Libya.

Output in Iran fell by another 159,000 bpd to 2.76 million bpd last month as the US sanctions took a heavy toll on the oil-rich nation’s shipments for the second month

In Libya, production dropped by 172,000 bpd to 928,000 bpd last month, after a group of armed protestors and aggrieved workers controlled the country’s biggest oilfield.

On the other hand, Iraq recorded the largest leap in production during December 2018, with its output rising 88,000 bpd to 4.71 million bpd.

Last December, OPEC agreed with non-OPEC producers, including Russia, to slash 1.2 million bpd from the market as from January.

The alliance, also known as OPEC+, tries to cap a plunge in oil prices and prevent a market glut.

By 1:20 pm GMT, US Nymex crude futures dropped 2.16% to 51.18 per barrel (pb), while global benchmark Brent futures fell 1.88% to $60.17 pb.