OPEC Oil Production Dips in April as Iran, Iraq, and Nigeria Curb Output: Reuters

OPEC oil production declined in April, driven by reduced exports from Iran, Iraq, and Nigeria, according to a Reuters survey released on Tuesday. The survey, based on shipping data and industry sources, revealed that the OPEC pumped 26.49 million barrels per day (bpd) this month, a decrease of 100,000 bpd from March's revised total.

As noted by Reuters, this decline comes amidst ongoing voluntary supply cuts implemented by several OPEC+ members, including Russia and other allies, to address economic weakness and counter increased supply from outside the group. The cuts, initially agreed upon in January and extended in March, are set to remain in place until the end of June. OPEC+ is scheduled to meet on June 1st to determine its next course of action regarding output policy.

The most significant production reductions in April were observed in Iran, Nigeria, and Iraq. Iranian output, exempt from quotas, slipped from a revised March figure that had reached a five-year high in November. Despite ongoing US sanctions, Iran had seen a substantial increase in production throughout 2023.

Iraq's production also declined slightly in April, despite a previous pledge to lower exports to compensate for exceeding its OPEC target. Nigerian output faced a similar decline, with exports falling more sharply due to increased intake by the Dangote refinery and a temporary outage affecting the Bonny production stream.

The survey indicates that OPEC fell short of its targeted production cuts by approximately 140,000 bpd in April, primarily due to Iraq and Gabon exceeding their intended production levels. Nigeria, on the other hand, is currently pumping below its target, marking a shift from earlier in the year.