Opec mulls removing the IEA as a secondary source

Opec mulls removing the IEA as a secondary source

London, 30 March (Argus) — Opec officials have discussed the possibility of removing Paris-based energy watchdog the IEA from the panel of "official" secondary sources that monitor the group's monthly crude production, according to two delegates.

The wider Opec+ group calculates the production quota compliance of individual members by averaging the output estimates of the six independent sources, which comprise Argus, the US' Energy Information Administration, S&P Global Platts, IHS Markit, Energy Intelligence and the IEA.

The IEA's potential removal from the panel will be discussed at tomorrow's Opec+ meeting. The reason is not immediately clear, but the energy watchdog has been critical of Opec+ recently, saying it is not doing enough to help tackle high energy prices. Earlier this month IEA executive director Fatih Birol described the group's decision to stick with a 400,000 b/d increase in its April crude quota as "disappointing".

Opec+ has not yet veered from the roadmap it agreed in July last year, opting to limit its production quota increases to 400,000 b/d each month and resisting pressure from outside the group for bigger hikes. Opec+ ministers have repeatedly defended the policy, arguing that high oil prices are being underpinned by geopolitical sentiment rather than market fundamentals, and