OPEC oil output fell in March due to oilfield maintenance in Angola and a halt in some of Iraq’s exports, a Reuters survey found on Friday, adding to the impact of strong adherence by top producers to a supply cut deal by the wider OPEC+ alliance.
The Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.90 million barrels per day (bpd) in March, the survey found, down 70,000 bpd from February. Output is down more than 700,000 bpd from September.
OPEC and its allies, known as OPEC+, agreed to cut production in late 2022 to support the market as the economic outlook worsened and prices weakened. A meeting of top OPEC+ ministers on Monday is expected to confirm the existing policy.
OPEC+ lowered its output target by 2 million bpd, of which about 1.27 million bpd was to come from the 10 participating OPEC countries. The target remains in place for March.
With the declines in Angola and Iraq in March, compliance with the agreement increased to 173% of pledged cuts, according to the survey, against 169% in February.
Output is significantly undershooting the targeted amount by 930,000 bpd because many producers – notably Nigeria and Angola – lack the capacity to pump at the agreed levels.
Libya, Iran and Venezuela are the three producers exempt from OPEC cuts. Iranian and Venezuelan output was steady while Libyan supply edged lower, according to the survey.
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.