OPEC Output Drops Further in February

EghtesadOnline: OPEC oil supply fell to a four-year low in February, a Reuters survey found, as top exporter Saudi Arabia and its Persian Gulf Arab allies over-delivered on the group’s supply pact while Venezuelan output registered a further involuntary decline.

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03 March 2019

The drop of 300,000 barrels per day comes despite criticism from US President Donald Trump, who last week tweeted a call for the group to ease its efforts to boost prices, saying they were “getting too high”.

On Jan. 1, OPEC and its allies began new production cuts to avert a glut that could soften prices. OPEC sources say the deal will go ahead despite Trump’s pressure.

“We are sticking to the plan,” one OPEC source said when asked about Trump’s tweet, according to Financial Tribune.

The 14 OPEC members pumped 30.68 million barrels per day in February, the survey showed on Friday, the lowest OPEC total since 2015. January’s total of 30.98 million bpd was not revised.

Oil has risen to $66 a barrel after a dip below $50 in December, boosted by lower Saudi output, involuntary curbs in other OPEC countries and the prospect of lower supply from Venezuela after Trump imposed sanctions on its oil industry.

OPEC, Russia and other non-members — an alliance known as OPEC+ — agreed to reduce supply by 1.2 million bpd. OPEC’s share is 800,000 bpd, to be delivered by 11 members — all except Iran, Libya and Venezuela, which are exempt from cuts.

In February, the 11 OPEC members bound by the deal achieved 101% of pledged cuts, the survey found, up from 70% in January. Among exempt producers, Venezuelan supply fell, while Iran managed to boost exports despite also being subject to US sanctions.