OPEC Oil-Output Cuts Aided by Exempt Nations as Compliance Slips

2017-04-05

OPEC Oil-Output Cuts Aided by Exempt Nations as Compliance Slips

OPEC’s progress in reducing the oversupply in global oil markets relied on contributions from Nigeria and Libya in March, two countries that are exempt from the group’s deal to rein in production.

The Organization of Petroleum Exporting Countries pumped 32.095 million barrels a day, down 200,000 a day from February, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. Supply from Nigeria and Libya dropped by a combined 210,000 barrels a day to 1.55 million and 620,000 a day, respectively.

Among the 10 members bound by production caps, compliance weakened to 89 percent of pledged reductions from 104 percent, the survey showed. As well as the two African countries, Saudi Arabia buoyed the group’s effort by cutting its own output by more than it agreed late last year.

Libyan supply was hurt by the shutdown of two key export terminals following clashes in early March. The ports have since reopened. Supply also dropped when the country’s biggest field, Sharara, temporarily halted last week. In Nigeria, volumes were curtailed by maintenance at the Bonga field, which normally pumps 225,000 barrels a day, according to the International Energy Agency.

Output from OPEC’s biggest member, Saudi Arabia, edged higher in March to 10.01 million barrels a day but remained below its individual quota of 10.058 million a day. Saudi supply in February was revised higher after the government told OPEC output had risen.

OPEC began production cuts on Jan. 1 in a bid to reduce swollen global inventories and bolster the price of oil, which continues to trade at half its 2014 level. Total output — including Libya and Nigeria — remains 335,000 barrels a day above target, putting the group about 75 percent of the way toward its goal.

Source: Bloomberg

Source from : Oil & Companies News

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