OPEC March Oil Output Declines to 11-Month Low

Crude oil production by the Organisation of Petroleum Exporting Countries fell in March to an 11 -month low due to declining Angolan exports , Libyan outages and a further slide in Venezuelan output , a Reuters ’ survey found , sending compliance with a supply-cutting deal to another record .

OPEC pumped 32 .19 million barrels per day last month , the survey found , down 90 ,000 bpd from February . The March total is the lowest since April 2017 , according to the Reuters’ survey.

OPEC is reducing output by about 1. 2 million bpd as part of a deal with Russia and other non – OPEC producers to get rid of excess supply. The pact started in January 2017 and will run until the end of 2018 .

Adherence by producers in the deal rose to 159 per cent of agreed cuts from 154 per cent in February , the survey found . There was no sign that other producers had boosted output to cash in on higher prices or to compensate for the Venezuelan decline.

Oil has topped $ 71 a barrel this year for the first time since 2014 , and was trading above $ 67 on Wednesday . Still , OPEC says supply restraints should be maintained to ensure the end of a glut that has built up since 2014 .

In March , the biggest decrease in supply came from Angola , which exported 48 cargoes, two fewer than in the same month of 2017 . Natural declines at some fields are weighing on output .

Production in Libya , which remains unstable due to unrest , slipped because of stoppages at two fields , El Feel and El Sharara , setting back 2018 ’s partial recovery in output .

And production fell further in Venezuela , where the oil industry is starved of funds because of an economic crisis . Output dropped to 1 .56 million bpd in March , the survey found , a new long -term low .

Output in OPEC ’s largest producer , Saudi Arabia , dropped by 40 , 000 bpd from February ’s revised level , even further below the kingdom ’s target.

OPEC ’ s number two producer , Iraq , pumped more . Exports from the south , the outlet for most of the country ’s crude , rose despite maintenance at a loading terminal. Exports declined from the north but domestic crude use increased .

Among others with higher output , the biggest rise came from the United Arab Emirates , where production had dropped in February due to maintenance.

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