(Bloomberg) -- OPEC's oil production increased last month by the most since July as conflict-torn Libya restored disrupted exports, and others delivered scheduled increases.
The Organization of Petroleum Exporting Countries bolstered supplies by 380,000 barrels a day in February, with just under half the addition provided by the North African nation, according to a Bloomberg survey. The country's output had been slashed by militias and bad weather during the previous month.
Still, the output boost after months of under-performance by OPEC and its partners -- who meet on Wednesday -- looks like too little, too late.
Oil prices have rocketed to a seven-year high above $105 a barrel in London as Russia's invasion of Ukraine triggers alarm that global markets are perilously ill-equipped to handle any disruption in exports from the region. Frustrated with OPEC's refusal -- or inability -- to open the taps more quickly, the U.S. and other major economies announced the release of emergency stockpiles on Tuesday.
Despite the turmoil, OPEC and its allies have signaled they'll agree another modest supply increase at Wednesday's gathering, ratifying a scheduled 400,000 barrel-a-day increment for April.
It would be difficult for the alliance to do any more: most members have been struggling to restore supplies as promised, let alone increase more. Group leader Saudi Arabia, which still has plentiful spare capacity, has signaled it's reluctant to compensate for lagging counterparts, especially as the Ukraine crisis hasn't so far curtailed oil supplies.
For beleaguered Libya, the rise in production to a four-month high will simply come as a welcome relief. The country began restoring output from its largest field, Sharara, in mid-January following a shutdown by militias amid a dispute over pay and politics. Output rose by 170,000 barrels a day to 1.12 million a day in February, according to the survey.
Production from OPEC's 13 members averaged 28.55 million barrels a day. The 10 countries involved in the accord to regulate supplies -- which excludes Libya -- increased by 230,000 barrels a day, close to the full amount pledged. However, owing to chronic under-performance in members like Nigeria and Angola, they're still considerably below their full target.
The figures are based on ship-tracking data, information from officials and estimates from consultants including Rystad Energy AS and JBC Energy GmbH.
©2022 Bloomberg L.P.
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