OPEC sticks to production cuts

Oil output from the ten OPEC members has remained steady during April 2017 at 31.85 mn barrels per day (bpd), indicating that the cartel is sticking to its production cut agreement, according to S&P Global Platts.

“OPEC members can go into their May 25 meeting in Vienna feeling good about their compliance levels. Even countries, like Iraq and the UAE, which have come in for some criticism over their production levels, moved closer to compliance in April. But an extension to the production cut agreement is far from a done deal, with many details to be negotiated, including cut levels, exemptions and duration, amid an increasingly skeptical market. OPEC still has much to discuss,” said Herman Wang, OPEC specialist, S&P Global Platts.

Production increases in Angola and Nigeria were offset by declines from Libya and Iraq. OPEC’s largest producer, Saudi Arabia, averaged 9.97 mn bpd April, falling below its quota under the deal of 10.058 mn bpd. The kingdom is seen as a driver of OPEC’s production cut deal.

Iran, which is allowed a slight output increase under the deal, held production steady in April at 3.77 mn bpd – below its quota of 3.797 mn bpd. The UAE also, lowered production slightly to 2.84 mn bpd, down 10,000 bpd in March.

The S&P Global Platts estimates were obtained by surveying OPEC and oil industry officials, traders and analysts, as well as reviewing proprietary shipping data.

Eleven non-OPEC countries have also agreed to cut output by a combined 558,000 bpd in the first half of 2017. Of those countries, Russia announced it had reached its commitment to cut 300,000 bpd.

Source: S&P Global Platts

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