The Organization of Petroleum Exporting Countries (OPEC) declined oil production in December 2018, ahead of an official plan to reduce oil inventories and increase the prices, Pipeline Oil and Gas Magazine reported.

In December 2018, output declined by 751,000 barrels per day (b/d), reaching 31.58 million b/d, according to the OPEC oil market report.

The production reduction occurred mainly because of Saudi Arabia, which recorded a decline of 468,000 b/d. Iran reduced its output by 159,000 b/d amidst the reestablishment of the US sanctions.

OPEC added that the global oil supply in December 2018 decreased by 350,000 b/d to average 100.02 million b/d.

The organization expects that world oil demand will increase by 1.29 million b/d, from an average demand level of 98.78 million b/d in 2018.

OPEC and its Russia-led allies (OPEC+) agreed to reduce oil production by around 1.2 million barrels per day (b/d) during a meeting in Vienna on December 6. OPEC will cut its production by 800,000 b/d from January 2019 while non-OPEC members will curb their production by 400,000 b/d.