By May 2, 2017 Read More →

OPEC output falls in April but compliance weakens: Reuters

OPEC output

OPEC output fell for a fourth straight month as the cartel along with some non-member nations struggle to help reduce the global crude supply glut. photo.

OPEC output supply cut compliance at 90 per cent in March

A Reuters study found that OPEC output fell for the fourth straight month in April as Saudi Arabia held its production below target levels and maintenance and unrest affected production in pact-exempt Nigeria and Libya.

However, Angola and United Arab Emirates reported higher-than-thought output in March, bringing compliance with the OPEC supply cut agreement from 92 to 90 per cent.

OPEC along with non-cartel members including Russia, pledged to cut production by about 1.8 million b/d for the first six months of 2017 in an effort to reduce the global crude glut.

As the oversupply stubbornly hangs on, OPEC is expected to extend the pact to the end of the year.

According to the Reuters survey, Angola reported the largest production gain in April due to higher exports after production at the East Pole field began in February.  Angolan compliance was down to 91 per cent, from 100 earlier in the year.

Kuwait and Saudi Arabia also reported small increases, but their compliance was second-highest and highest respectively among OPEC participants.

Saudi Arabia cut production by 574,000 b/d, well above the target cut of 486,000 b/d.

Also in April, Iran’s production increased slightly, but, Tehran was allowed a small increase in its output under the OPEC pact.

Output in the UAE fell, but March production was higher than originally thought.  The UAE is claiming it full compliance with the agreement and says its own production figures do not match those given by secondary sources used by OPEC to track compliance.

Lower output from pact-exempt Libya and Nigeria helped reduce overall OPEC output.  In April, OPEC output averaged 31.97 million b/d, about 220,000 over its supply target adjusted to remove Indonesia which left the cartel in December of last year.

The Reuters survey is based on shipping data from external sources at oil companies, OPEC and consulting firms.







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