A recent survey by Reuters revealed a significant drop in oil output by the Organization of Petroleum Exporting Countries (OPEC) in March, largely attributed to reduced crude oil exports by Nigeria and Iraq. OPEC pumped less crude last month, reflecting lower exports from both countries amidst ongoing voluntary supply cuts by certain members as agreed with the wider OPEC+ alliance.
Iraq, which had pledged to lower exports after exceeding its OPEC target, saw a 50,000 barrels per day (bpd) cut in March, leaving more adjustments to be made in the coming months to fulfill the commitment. Similarly, Nigerian production declined, with exports experiencing a sharper decline, partly due to increased shipments to the Dangote refinery.
Overall, OPEC fell approximately 190,000 bpd short of its targeted cuts in March, largely due to higher-than-planned output from Iraq, Nigeria, and Gabon. However, Gulf producers Saudi Arabia, Kuwait, and the United Arab Emirates maintained output close to their voluntary targets, along with Algeria, according to the survey findings.
Source: PUNCH