The Organization of Petroleum Exporting Countries (OPEC) reduced its crude oil production in March, ahead of a planned increase in May, according to a new Bloomberg survey released on Tuesday.
In March, OPEC cut its production to an average of 27.43 million barrels per day (bpd), a decrease of 110,000 bpd from February. This reduction reflects OPEC’s effort to enforce stricter compliance with production quotas among its members.
The survey revealed that Nigeria experienced the largest decline in production, cutting 50,000 bpd to an average of 1.5 million bpd. This drop was partly due to a fire on the Trans-Niger Pipeline, which contributed to the decrease.
Iraq, a frequent underperformer in meeting its production cut targets, followed with a 40,000 bpd drop, bringing its output to 4.15 million bpd. Despite this reduction, Iraq still exceeded its quota of 4 million bpd.
On the other hand, the UAE increased its production by 30,000 bpd, reaching 3.33 million bpd, significantly surpassing its production quota.
While Iraq and the UAE had different production trends, OPEC data shows that both countries are largely in compliance with the group’s production targets.
Looking ahead, analysts expect the broader OPEC+ group to raise production quotas by 138,000 bpd for May, following a similar increase in April. OPEC+ is scheduled to meet virtually this week to approve the production hikes.
As of Tuesday afternoon, oil prices continued to decline. Brent crude was priced at $74.57 per barrel, slightly lower than Monday’s levels. Although prices have increased from $71.60 per barrel at the start of March, they remain $16 per barrel lower than at the same time last year.
Related Topics:
- Oil Prices Drop 2% to 12-Week Low as OPEC+ Plans to Boost Output
- OPEC+ Reconsiders Oil Production Increase Following Trump Complications
- How Will OPEC React to Iran’s Request for Action Against U.S. Sanctions?