LONDON (Archyde.com) – A Archyde.com survey found that the increase in OPEC oil production in March did not reach the level targeted by an agreement with allies, as increases by Saudi Arabia and other major producers were offset by a decline in the production of African members. The survey found that the Organization of the Petroleum Exporting Countries (OPEC) pumped 28.54 million barrels per day in March, an increase of 90,000 barrels per day from the previous month, but less than the increase of 253,000 barrels per day stipulated in its agreement with allies, including Russia. OPEC and its allies, known as OPEC Plus, are gradually withdrawing production cuts applied since 2020 as demand recovers from the Corona pandemic.
OPEC Plus met yesterday and confirmed previously agreed plans, despite the rise in oil prices to 2008 levels to exceed $139 a barrel in the wake of the Russian attack on Ukraine. The agreement calls for an increase of 400,000 barrels per day in May from all members of OPEC Plus, of which regarding 253,000 barrels per day are shared by the ten OPEC members covered by the agreement.
Archyde.com polls showed production below the increases pledged in the October-January period, but exceeding them in February with many producers unable to pump more crude due to a lack of investment, a trend that has increased with the pandemic. As a result, the 10 OPEC members are pumping far less than the deal called for. The survey found that the level of OPEC commitment to the cuts it pledged rose to 151 percent in March from 136 percent in February.
The survey showed that Nigerian production fell by 100,000 barrels per day following accidents led to the declaration of force majeure in the regions of Boni and Bras River. Force majeure was lifted from the Bras River area.
Libya’s production decreased by 50 thousand barrels per day due to the closure of two oil fields at the beginning of the month.
The production interruption limited the impact of the increase in OPEC production by major producers. The survey found that the largest increase in March was 110,000 barrels per day, and came from Saudi Arabia.
The survey concluded that Iran, which is exempt from production cuts, has been shipping more oil to China in recent months although there was no significant change in its production in March, coinciding with continuing talks on reviving Tehran’s 2015 nuclear deal with world powers.
Venezuela’s production continued to rise, which is also excluded from the cuts.
The survey found that production did not increase in Equatorial Guinea as well as Gabon, due to the lack of additional production capacity.
