December 2, 2022

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OPEC production fell short of Reuters' target in March

OPEC production fell short of Reuters’ target in March

© Reuters. OPEC logo at the organization’s headquarters in Vienna, Austria. Photo from the Reuters archive.

LONDON (Reuters) – An increase in OPEC oil production in March did not reach the target of an agreement with allies, as the rise of other major producers was offset by lower output from African members, according to a report.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 28.54 million barrels a day in March, up 90,000 barrels a day from the previous month, but less than the 253,000 barrels a day set by the agreement. Allies, including Russia.

OPEC and its allies, known as OPEC +, are gradually reversing production cuts that have been in place since 2020 as demand is recovering from the corona epidemic. OPEC + convened on Thursday to confirm previously agreed plans, despite the $ 139 a barrel in 2008 following Russia’s occupation of Ukraine.

The agreement calls for an increase of 400,000 barrels per day in May from all OPEC + members, of which approximately 253,000 barrels per day are shared by the 10 OPEC members under contract.

Reuters polls showed lower-than-promised production in October-January, but higher than that in February, with many producers unable to pump more crude oil due to a lack of investment, which has been exacerbated by the epidemic.

As a result, 10 OPEC members pay far less than the contract called for. The survey found that the volume of OPEC pledges rose to 151 per cent in March from 136 per cent in February.

* Production is low in Nigeria and Libya

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The study shows that Nigerian production has dropped by 100,000 barrels per day due to accidents in the Pony and Bros River areas. Porsche Majur was lifted from the Brass River area.

Libya’s production fell by 50,000 barrels a day as two oil fields were closed earlier this month.

Production disruption limited the impact of increased OPEC production by large manufacturers. The survey found that the largest increase was 110,000 barrels per day in March and came from Saudi Arabia.

Kuwait and Iraq each made a small increase of 30,000 bpd, while the UAE added 10,000 bpd.

The survey concluded that Iran, which has been exempted from production cuts, has been sending more oil to China in recent months, although there has been no significant change in its production in March, following a series of talks to renew Tehran’s 2015 nuclear deal with world powers.

Venezuela’s production continued to increase, which was also excluded from the cuts.

The survey found that production did not increase due to the lack of additional production capacity in Equatorial Guinea and Gabon.

(Produced by Mahmoud Salamah and Rehab Ala for the Arab Bulletin, edited by Mustafa Saleh)

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