OPEC oil production rose slightly in April on disruptions in Africa


The increase in oil production of the OPEC in April was lower than expected in the agreement with its allies, according to a Reuters poll, as declines in Libya Y Nigeria offset increases in the supply of Saudi Arabia and other large producers.

The Organization of Petroleum Exporting Countries (OPEC) pumped 28.58 million barrels per day (bpd) in April, according to the survey, which represents an increase of 40,000 barrels per day from the previous month and falls short of the increase of 254,000 barrels per day foreseen in the supply agreement. .

OPEC and its allies, known as OPEC+they are gradually relaxing the production cuts of 2020 as demand recovers from the pandemic.

OPEC + meets on Thursday and is expected to confirm a previously agreed increase in production, despite the rise in prices. oil prices behind the Russian invasion of Ukraine.

“Probably the opinion is to keep the plan,” an OPEC delegate said of Thursday’s meeting.

The agreement provided for a 400,000 barrels per day increase in April by all OPEC+ members, of which some 254,000 barrels per day are shared by the 10 OPEC producers covered by the deal.

Output fell short of promised increases from October to March, with the exception of February, according to Reuters polls, as many producers lack the capacity to extract more crude due to insufficient investment, a trend accelerated by the pandemic.

As a result, the 10 OPEC members are pumping far less than the deal envisioned. Compliance with cuts promised by OPEC was 164%, according to the survey, compared to 151% in March.

Libya and Nigeria fall

The biggest drop in output was in Libya, which at one point in April lost more than 550,000 barrels per day due to blockades at fields and terminals. Libya is one of the OPEC members exempt from cuts.

Nigerian production fell by 40,000 barrels per day, according to the survey, with exports down from March. Force majeure is maintained in the export flow of Bonny Light.

These interruptions limited OPEC’s output increase, as major producers kept their promise to increase supply. The largest increase in April, of 100,000 barrels per day, came from Saudi Arabiaaccording to the survey.

Iraq, which registered a month-on-month increase in its exports, increased its production by 80,000 barrels per day.

United Arab Emirates met its highest quota and added 40,000 barrels per day, while Kuwait’s production increased by 10,000 barrels per day.

Iranalso exempt from making cuts, has been sending more to China in 2022 and production rose in April, according to the survey, even as talk of reviving its nuclear deal of 2015 with the world powers have not yet reached an agreement.

The production of Venezuelaanother exempt country, increased.

Output fell or did not increase in Angola, Equatorial Guinea and Gabon, according to the survey, due to a lack of capacity to produce more.

The Reuters survey aims to track supply in the market. It is based on transport data provided by external sources, data on flows of Refinitiv Eikoninformation from tanker trackers such as Petro-Logisticsas well as information provided by oil company sources, OPEC and consultants.



Leave a Comment