According to a Reuters survey on Friday, the OPEC oil output declined in March due to oilfield maintenance in Angola and a halt in some of Iraq’s exports.
The survey found that the Organization of the Petroleum Exporting Countries (OPEC) pumped 28.90 million barrels per day (bpd) this month, a decrease of 70,000 bpd from February. The output has fallen more than 700,000 bpd from September. OPEC and its allies, collectively known as OPEC+, agreed to reduce production at the end of 2022 to support the market as the economic outlook deteriorated and prices weakened.
A meeting of top OPEC+ ministers on Monday is expected to confirm the existing policy. The OPEC+ lowered its output target by 2 million bpd, of which about 1.27 million bpd was to come from the 10 participating OPEC countries, and the target is still in place for March.
With the declines in Angola and Iraq this month, compliance with the agreement increased to 173% of pledged cuts, according to the survey, against 169% in February, according to Reuters.
OPEC oil output is significantly undershooting the targeted amount by 930,000 bpd because many producers – notably Nigeria and Angola – lack the capacity to pump at the agreed levels.
The largest drop of 100,000 bpd was in Angola due to a small export programme and field maintenance on the Dalia stream. Exports hit a multi-month low on some estimates.
The second-biggest drop came from Iraq, where companies have reduced output in the northern Kurdistan region following a halt to the export pipeline on Saturday. Higher exports from southern Iraq limited the decline, the survey found.
OPEC’s Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates maintained high compliance with their targets under the OPEC+ agreement, the survey found.
Among countries with higher output, Nigerian production again posted OPEC’s biggest increase in March, the survey found, bringing the country closer to a target to lift output to 1.6 million bpd this quarter.
Libya, Iran and Venezuela are the three producers exempt from OPEC cuts. Iranian and Venezuelan output was steady while Libyan supply edged lower, according to the survey.
