Opec oil output falls on Iraq and Nigeria outages

Reuters

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.

The Organization of the Petroleum Exporting Countries 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.

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 two 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 percent of pledged cuts, according to the survey, against 173 percent 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 labor dispute. The company said on April 27 it had resumed operations after resolving the issue.

Opec’s Gulf producers Saudi Arabia, Kuwait and the United Arab Emirates maintained high compliance with their targets under the Opec+ deal, keeping output steady, the survey found.

Among countries with higher production, output from Angola posted Opec’s largest increase after maintenance on the Dalia stream hit production in March.

Libya, Iran and Venezuela are the three producers exempt from Opec cuts. Iranian output was steady, Libyan supply edged lower and Venezuelan production rose slightly, according to the survey.

The 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.