By Julianne Geiger
OPEC’s crude oil production fell in April, according to a new Reuters survey, with news of the fall likely to add support to falling oil prices.
According to the survey, the results of which were released on Tuesday, OPEC’s crude oil production fell to 26.49 million barrels per day—that’s a 114,000 bpd drop from the levels OPEC produced in March, according to OPEC’s official March figure. According to revised Reuters figures for March production, the group’s ouput sagged by 99,000 bpd in April.
The survey is based on shipping data and “information from industry sources,” according to Reuters.
In March, Iraq, Nigeria, Venezuela, the UAE, and Libya all saw production decreases, according to OPEC’s secondary sources, with Nigeria seeing the biggest dip. Saudi Arabia and Iran saw the largest production increases.
OPEC’s official Monthly Oil Market Report covering the month of April will be released on May 14, according to OPEC’s published schedule.
The OPEC+ coalition, spearheaded by the largest producers in the group, Saudi Arabia and Russia, had initiated additional production cuts at the beginning of 2024 to mitigate the risk of a global oil surplus, and in March, the group agreed to extend those cuts until the end of June.
Iraq and Kazakhstan had previously pledged to “achieve full conformity” and compensate for their overproduction. They submitted detailed plans today to do just that.
The next JMMC meeting is scheduled for June 1.
Saudi Arabia previously referred to the decision to extend output cuts into the end of June as “precautionary,” aimed at “supporting the stability and balance of oil markets.”
Saudi Arabia has said that when it is time to roll back the production cuts, it will be done gradually “subject to market conditions.”
NB: Julianne Geiger wrote this article for Oilprice.com
