Opec has decided to stop using the US Energy Information Administration (EIA) to monitor the oil production levels of its members. This change was announced on Monday and comes in conjunction with a shift in monitoring partnerships, as Opec will now utilize data from companies like Kpler, OilX, and ESAI instead of the EIA and Rystad, another energy consultancy.
According to sources familiar with the situation, five other firms that track Opec’s output will remain in their roles. This group, consisting of eight monitoring companies, is essential for checking if Opec nations are adhering to their agreed production limits.
A former Opec official suggested that the organization may view the EIA as closely tied to the US government, stating, “Its numbers were not particularly different from the other monitors, perhaps a little bit higher on the UAE’s production.” The EIA operates as part of the US Department of Energy, but functions independently.
Despite the ongoing discussions between the US and Saudi Arabia, a leading member of Opec, the relationship has had challenges, particularly during Donald Trump’s presidency. Trump frequently pushed Opec to increase oil production to stabilize prices, especially when US sanctions impacted Iranian oil.
The decision to remove Rystad is puzzling to some observers, as the company consistently reported data aligned with the consensus of other monitors and maintained strong ties with major players like Saudi Aramco and Adnoc.
Previously, in 2022, Opec had made a similar move by cutting ties with the International Energy Agency (IEA), mainly due to growing differences on energy transition perspectives. As of now, both the EIA and Opec have remained silent on the specific reasons behind these recent adjustments. Meanwhile, Rystad Energy has emphasized its commitment to its relationship with Opec and acknowledged that altering market intelligence providers is not uncommon in such situations.