OPEC oil output fell in March due to oilfield maintenance in Angola and a halt in some of Iraq’s exports, a Reuters survey found on Friday, adding to the impact of strong adherence by top producers to a supply cut deal by the wider OPEC+ alliance.
The Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.90 million barrels per day (bpd) this month, the survey found, down 70,000 bpd from February. Output is down more than 700,000 bpd from September.
OPEC and its allies, known as OPEC+, agreed to cut production in late 2022 to support the market as the economic outlook worsened and prices weakened. A meeting of top OPEC+ ministers on Monday is expected to confirm the existing policy.
OPEC+ lowered its output target by 2 million bpd, of which about 1.27 million bpd was to come from the 10 participating OPEC countries. The target remains in place for March.
With the declines in Angola and Iraq this month, compliance with the agreement increased to 173% of pledged cuts, according to the survey, against 169% in February.
Output is significantly undershooting the targeted amount by 930,000 bpd because many producers – notably Nigeria and Angola – lack the capacity to pump at the agreed levels.
ANGOLA, IRAQ
The largest drop of 100,000 bpd was in Angola due to a small export programme and field maintenance on the Dalia stream. Exports hit a multi-month low on some estimates.
The second-biggest drop came from Iraq, where companies have reduced output in the northern Kurdistan region following a halt to the export pipeline on Saturday. Higher exports from southern Iraq limited the decline, the survey found.
OPEC’s Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates maintained high compliance with their targets under the OPEC+ agreement, the survey found.
Among countries with higher output, Nigerian production again posted OPEC’s biggest increase in March, the survey found, bringing the country closer to a target to lift output to 1.6 million bpd this quarter.
Libya, Iran and Venezuela are the three producers exempt from OPEC cuts. Iranian and Venezuelan output was steady while Libyan supply edged lower, according to the survey.
The Reuters survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.