OPEC pumps 28.62 million bpd in April

…Nigeria, Iraq production drops 

News wire – The Organization of the Petroleum Exporting Countries, OPEC, oil output fell in April due to a halt in some of Iraq’s exports and delays to Nigerian shipments, a Reuters survey found, adding to the impact of strong adherence by top producers to a supply cut deal by the wider OPEC+ alliance.

OPEC pumped 28.62 million barrels per day, bpd, last month, the survey found, down 190,000 bpd from March. Output is down more than 1 million bpd from September.

The Reuters survey aims to track supply to the market. It is based on shipping data provided by external sources, Refinitiv Eikon flows data, information from companies that track flows such as Petro-Logistics and Kpler, and information provided by sources at oil companies, OPEC and consultants.

OPEC and its allies, known as OPEC+, agreed to cut production in late 2022 to support the market as the economic outlook worsened, hitting prices.

Output is set to drop further in May as a new round of voluntary cuts unveiled on April 2 takes effect.

For April, OPEC had agreed to cut output by about 1.27 million bpd as part of a total 2 million bpd reduction by OPEC+ pledged last year.

With the involuntary declines in Iraq and Nigeria in April, compliance with the agreement increased to 194% of pledged cuts, according to the survey, against 173% in March.

Output is significantly undershooting the targeted amount by 1.2 million bpd because many producers – notably Nigeria and Angola – lack the capacity to pump at the agreed levels.

The largest drop of 200,000 bpd was in Iraq where companies have reduced output in the northern Kurdistan region following a halt to the export pipeline in March. Higher exports from southern Iraq limited the decline, the survey found.

The second-biggest drop of 100,000 bpd came from Nigeria, where Exxon declared force majeure on liftings at its terminals in the country following a labour dispute. The company said on April 27 it had resumed operations after resolving the issue.