OPEC oil production falls to the lowest level in a year
08:25 - 01/05/2018
Information / follow up ..
OPEC production of oil fell in April to its lowest level in a year due to lower production in Venezuela and lower shipments from African producers, bringing compliance to the agreement to cut supply to a new record, a Reuters survey showed.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 32.12 million barrels per day this month, down 70 thousand barrels per day from March. According to Reuters surveys, total production this month is the lowest since April 2017.
OPEC is cutting output by about 1.2 million bpd in a deal with Russia and other non-OPEC producers to get rid of excess supply. The agreement entered into force in January 2017 and continues until the end of 2018.
The survey showed that the rate of compliance by producers participating in the agreement with agreed reductions was 162 percent compared with a revised 161 percent in March. Again, there have been no signs that Saudi Arabia or other major producer countries have increased production significantly to take advantage of higher prices or to offset Venezuela's decline.
"So closing the supply gap requires a rise in US production," said Carsten Frisch, an analyst at Commerzbank, referring to the lack of additional supplies from other OPEC members to offset the decline.
The price of oil exceeded $ 75 a barrel this year for the first time since 2014, and traded Monday near $ 74 a barrel. OPEC, however, says production restraints should be maintained to ensure the elimination of the bottlenecks that have been in place since 2014.
In April, the biggest drop in supplies was to Venezuela, whose oil sector was hungry for money because of the economic crisis. The survey showed production fell to 1.50 million bpd in April.
Production in volatile Libya has also fallen, after what it suspected of sabotage was caused by a brief halt in oil flows from the oilfields of Waha oil company, sources in the sector said.