The reduction of oil exports by Nigeria and Iraq in March caused a decrease in crude oil output by the Organisation of Petroleum Exporting Countries (OPEC) last month.
A survey by Reuters on Monday, 1st April, proved that OPEC pumped less crude in the last month of March, showing a lower rate of exports from Iraq and Nigeria. This is in opposition to an ongoing voluntary supply reduction by some members who agreed with the global OPEC+ partners.
It all came in as industry data as it also showed that the cost price of Brent, the worldwide standard price for crude oil, increased to $87.92 per barrel at 6 pm +GMT Nigeria time.
The cost price for crude oil appreciated by $0.95 or 1.1 per cent on Monday, 1st April, when compared to what it was traded for during the previous day, after decreased supply from the producers.
OPEC record to have pumped 26.42 million barrels per day last month April 2024, down by 50,000 bpd from February 2024, with the survey by Reuters, based on the information from industry sources and shipping data.
Many members of OPEC+, which includes OPEC, Russia and other partners, made new adjustments in January to cut down economic weakness and increase supply outside to other interested customers.
All crude oil producers agreed last month to leave it at the agreed price until the end of June 2024.
An OPEC+ panel of executive ministers is scheduled to meet on Wednesday to review market prices and their members’ production. They are not expected to make any new policy changes before the entire group’s next full meeting, scheduled for June 1, 2024.
The biggest output decrease in March came in from Iraq and Nigeria, the survey by Reuters discovered.
Iraq promised last month to reduce exports to compensate for pumping over its OPEC target, a pledge that would counter shipments by 130,000 bpd from February.
According to the reports from the survey, the 50,000 bpd reduction in March leaves much work to be done in later months to meet the pledge that was made.
Nigerian oil production also reduced, with exports depreciating faster and sharply, according to reports from some ship trackers, when the Dangote refinery adopted more cargoes.
OPEC fell about 190,000 bpd, according to reports, short of its target in March, mostly because Iraq, Nigeria, and Gabon ended up pumping more than they had aimed for, the survey disclosed.
Gulf producers in Saudi Arabia, Kuwait and the United Arab Emirates all kept their output near to their voluntary targets, the survey discovered, as well as Algeria.
The survey discovered that Iran’s output, which emanated from quotas, edged lower. Iran is currently pumping close to a five-year high reached in November after posting one of OPEC’s biggest output increases in 2023, not minding the United States sanctions in place.
According to the Reuters survey, output from any OPEC country did not rise significantly last month. Libya, which is exempt from quotas, pumped an extra 20,000 bpd as its output finally returned to normal after it stopped in February.
The survey has a goal to locate supplies to the market and is based on the shipping data given by external sources and information from all the companies that track inflows – such companies as Petro-Logistics and Kpler – and they also track information given by other sources at oil companies, OPEC and their consultants.
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